Calls for the stamp duty holiday to be extended have ramped up following the announcement the nation was to enter a third lockdown in a bid to slow down the spread of the latest strain of Covid-19.
Prime Minister Boris Johnson enforced the new restrictions on Monday evening, ordering the public to stay at home to save lives and prevent an overburdening of the NHS.
But while schools have closed and people have been urged to work remotely wherever possible – in one significant contrast to the first lockdown, the property market remains open.
This means people can still move home and complete on housing transactions provided they adhere to social distancing rules.
This might be good news for movers, but property and mortgage professionals are concerned the fact many of them will have to work from home now will add additional pressure to their businesses. Many were already struggling under the strain of the sheer number of home movers keen to get into their new dwellings before the stamp duty holiday ends on 31 March.
Calls for the holiday to be extended by up to three months were already being made at the end of last year as mortgage brokers, lenders, conveyancers, surveyors and others involved in housing transactions raised concerns the end of the ‘holiday’ would create ‘cliff edge’ scenario and some buyers might miss out on the tax break.
Now the lockdown announcement has added further fuel to their argument for an extension.
Andrew Montlake, who is managing director of mortgage broker, Coreco, explained: “Though the property market remains technically open, there will now be considerably more logistical issues for the simple reason that a lot of people will be working from home.
“Lenders, valuers and conveyancers are already experiencing bottlenecks and delays given the sheer amount of applications going through and the administrative upheaval caused by the latest lockdown will only serve to accentuate them.
“We would not be surprised if the Treasury makes an announcement this week about extending the Stamp Duty deadline to keep demand alive and give the property industry some much needed wiggle room.”
Impact on movers
Bank of England figures out yesterday revealed in November mortgage approvals were at their highest level since August 2007. This highlights just what a profound impact the stamp duty holiday has had on the property market.
Jeremy Leaf, a north London estate agent, said: “There are many people who have made legal commitments to buy, sell or rent, and need or have to move.
“This could be for health or financial reasons, a relationship breakdown or domestic violence – whatever the reason, these moves can’t be halted even in light of the pandemic.
‘We will be returning to the protocols that we previously adopted and there will be a clear distinction between occupied and unoccupied properties.
“While the property market remains open for business, the new lockdown will have some impact on surveyors, removals firms etc and in the circumstances, it would be prudent for the Chancellor to reconsider the stamp duty deadline. Those who have moved heaven and earth to meet the deadline should not now be penalised if they miss it through no fault of their own.”
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