At Stones Residential, we have witnessed the positive impact the stamp duty holiday has had on the local, regional and national market. The London housing market has been invigorated by the chance for buyers to save up to £15,000.
However, the heightened level of activity in the market is currently causing a backlog. There are genuine fears many people will miss out on the stamp duty holiday, with the deadline of March 31st 2021 looming.
Also, this date is also the deadline of the Help To Buy scheme. Therefore, there is a building level of pressure to conclude deals before this date.
More time is needed to help people move
This has led many key property industry people and bodies to sign an open letter to the Government, asking for an extension.
Signatories of the letter include:
British Association of Removers
The Guild of Property Professionals
Residential Property Surveyors Association
Society of Licenced Conveyancers
House Buying and Selling Group
The letter details the significant pressure placed on the housing market because of the holiday, and how the industry is already feeling under the strain as of late October 2020.
The letter reads; “Operational constraints in all areas of the home buying industry caused by the disruption brought about by Covid-19 and the current advice to work at home where possible, have seen average property transaction times lengthen from 12 weeks to 20 weeks. We are concerned that consumers continue to offer on properties expecting to benefit from the SDLT rate reduction but in reality they may be too late.”
There is a call for the stamp duty holiday to be extended by six months, taking it to September 2021. There is also hope for measures to be implemented which would see the holiday taper off, as opposed to reach a “cliff edge” and then stop abruptly.
NAEA Propertymark is calling for assistance
While NAEA Propertymark chief executive Mark Hayward is one of the signatories on the letter sent to the Chancellor, he has also spoken in greater length about his concerns over people missing out on the stamp duty holiday.
Mark said; “The joint letter sent to the Chancellor today is an important step in protecting those in the process of buying or selling a house that might miss out on the 31st March stamp duty deadline because of increased pressure on service providers within the industry, which is causing delays for buyers and sellers in the sector.”
Mark Hayward continued by saying; “The boom, caused by the stamp duty holiday, has been hugely beneficial for the housing market; however, the stamp duty cliff edge on March 31 could cause thousands of sales to fall at the final hurdle and have a knock on and drastic effect on the market which has recovered well from the Covid slump.”
Mark Hayward from NAEA Propertymark concluded by saying; “We are calling on government to rethink these timings, so pressure on the system can be released to allow transactions to complete and avoid a disorderly and distressing period for movers and businesses throughout the market.”
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.