With thousands of homebuyers set to miss Wednesday’s stamp duty holiday deadline, Knight Frank reports that a number of previously accepted offers on properties are now in the process of being renegotiated. 

The company says that prices in some markets have been more flexible than others so far this year. From 1 July, the maximum saving falls to £2,500 from £15,000 in England, which means a figure of £12,500 will be the logical starting point for many conversations, according to Knight Frank. 

The firm expects stamp duty to continue to distort normal patterns of housing market activity in the second half of this year – more than other years. Another factor to consider is that there has been greater flexibility around asking prices in some markets more than others, which could mean fewer deals falling through. 

“Given the much-publicised race for space, it is no surprise that there has been a higher proportion of reduced asking prices in the capital during the pandemic,” said Tom Bill, head of UK residential research at Knight Frank. “It is the part of the country where the impact of the taper will be felt least due to higher average property prices, but this flexibility will support activity in coming months.”