As most of us know in July the government introduced a stamp duty holiday for all buyers in an attempt to stimulate the market, saving buyers £000’s. There is no doubt this has increased activity in the market but will the date the incentive ends of 31st March 2021 come too soon for many homebuyers. Estate Agents, Solicitors and Surveyors are already praying the government extend the March deadline. Many experts predict the reason for the current high level of demand for properties in the UK is because of the stamp duty holiday.
Why may people miss the deadline?
One of the big property portals have apparently reported that 140,000 properties currently have an agreed sale. This is a staggering 50% higher than what it is normally this time of year.
It’s because of this high level of demand the aforementioned industries are hoping for an extension as they feel lots of prospective buyers will miss this deadline.
The worry of people missing the boat isn’t just down to increase in workloads for lenders etc but Covid-19 having an impact. People within these industries may not have the infrastructure in place they would have when working in their normal office environment. Therefore and through no fault of their own are not working as productive. Because of this, lenders are behind with mortgage applications with certain lenders reporting backlogs of six weeks.
Do we think the stamp duty holiday will be extended?
So far the government have confirmed the date will not be extended but there is still time.
Last week the housing minister commented he will continue to monitor the housing market. Current figures indicate something may have to be done, if not the pressure solicitors will come under may be unbearable. House buyers could lose £000’s or even their dream home as they may not have the extra funds required. If a full extension is not granted to everyone an extension for those who have got so far into their purchase maybe a more sensible approach.
What can you do to ensure you meet this deadline?
So if you’re in the race to meet the end of March deadline what can you do to speed up your process?
Buyer – Before making serious enquiries with estate agents speak to a mortgage broker to obtain an agreement in principal. This will give you the peace of mind lenders/banks are willing to lend you the money you require to buy your next home. Also decide who you would like to be your conveyancer/solicitor once you find your dream home. A good idea would be to contact FastMove Conveyancing. To get the most competitive quote relative to your circumstances all you need to do is answer a few questions and they will do the rest. Ticking these two boxes off before making an offer will buy you at least a week, maybe more.
Seller – We cannot stress the importance of instructing a solicitor at the same time you put your property on the market. Therefore, by the time you have agreed a sale for your property you will be ‘contract ready’. This is a very strong position to be in if you are after a fast completion. For help finding the most competitive conveyancers contact FastMove Conveyancing. All you need to do is fill in your details and they will do the rest.
If you would like a free valuation contact us now on 03333 232 199 or click here.