Over three in five (62%) property purchases are at risk of being delayed or falling through if buyers miss the stamp suty deadline on 31 March, Upstix has revealed.

New research from the home buying firm found that buyers currently in the process of purchasing revealed that if they cannot complete the purchases before the deadline, 36% would try to offset the stamp duty banding increase by renegotiating the price of the property.

After 31 March, the nil-rate threshold on stamp duty will be lowered from £250,000 to £125,000, increasing costs for many buyers.

For non-first-time buyers, the amount of stamp duty payable on a £500,000 property will increase from £12,500 to £15,000 after the deadline.

A further 24% said they may have to borrow money if they miss the deadline, which could put the purchase at risk, while 19% said they could pull out of their property purchase altogether.

The survey found that 34% of buyers said they would proceed as planned if they missed the deadline and would pay the increased stamp duty out of pocket.

Alongside increased costs for buyers, Upstix warned that the current "conveyancing crunch" ahead of the deadline could be costly for sellers.

Chief executive officer at Upstix, Fred Jones, said: "As thousands of buyers rush to complete their property purchases ahead of the stamp duty deadline, we’re seeing a conveyancing crunch that impacts buyers and sellers alike. Conveyancers are juggling high volumes of clients, all keen to press forward at speed, and it simply won’t be possible to meet all this demand.

"The upshot of this could be costly for both sides. Sellers may have to take a hit on the purchase price to offset buyers’ additional costs. In turn, buyers may have to borrow additional funds, with the added cost and risk that comes with this. Plus, both parties could be at risk of breaking their chains, which could have far-reaching implications for their finances, and their lives."

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