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The stamp duty holiday has created significant interest and activity in the housing market. The chance to save up to £15,000 is an appealing thought for many households. Also, with a deadline in place, people know they must act sooner rather than later.
However, with a high level of activity creating a backlog in the industry, there are growing concerns many buyers will miss out on the saving.
More time is needed to conclude deals
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
- NAEA Propertymark
- The Guild of Property Professionals
- Residential Property Surveyors Association
- Conveyancing Association
- Society of Licenced Conveyancers
- Kate Faulkner
- 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.”
Some parties have called for the stamp duty holiday to be extended to September 2021, which would be an extension of six months. There have also been calls for the holiday to feature a tapering off process, which would avoid the “cliff edge” many fear.
NAEA Propertymark is calling for assistance
NAEA Propertymark chief executive Mark Hayward is one of the signatories on the letter sent to the Chancellor, but he has also released his own letter on the subject.
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.”
If you are looking to make a move in the Melksham property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone Lock & Key on 01225 707 342 or why not come and visit us at 5 Church Street, Melksham.