From calls for an extension to the stamp duty holiday to the return of low deposit mortgages – it’s been a busy start to 2021 in the property market. Peter Joseph of Home Legal Direct wonders what more 2021 has to bring…
We have seen numerous updates and changes in the property industry over recent months. From heightened calls to extend the stamp duty holiday to the return of high loan-to-value mortgages to market – the industry has been far from quiet.
As we enter 2021 and into a new national lockdown, many are speculating on what the coming year has in store for the property market.
How will the new lockdown affect the market?
The government has confirmed that the housing market will remain open during the new national lockdown.
For many homebuyers and sellers, this is positive news, with thousands of transactions currently underway.
While the news that home moves can still take place has been well received, there are strict guidelines to be followed. Viewings are still allowed to take place where relevant social distancing and PPE measures are adhered to.
Removal firms can still enter properties, but it is advised that those outside of an individual bubble do not help with the move. Guidelines are being updated regularly and it is advised to follow updates from the Ministry of Housing, Communities and Local Government if you have a move underway.
Calls to extend the stamp duty holiday are still being heard
The market continues to react to the news that there are no plans for an extension, or tapering, of the stamp duty holiday.
Following the statement issued by the Treasury, many homebuyers feel concerned about the progress of their transactions.
With reports that almost a third of buyers will pull out if they miss the deadline, the effect that this could have on the market is uncertain.
However, calls for an extension, or tapering, of the planned stamp duty deadline, are still being heard.
Many are looking to the Chancellor to allow more transactions to benefit from the tax savings, through either an extension or tapering of the deadline. These calls look set to continue into the new year as the 31 March deadline draws ever closer.
LTV’s come back to the market
There is good news for homebuyers, as high loan-to-value mortgage deals come back to the market. New products are available from lenders such as Barclays, NatWest, and many more. With the options multiplying, there is now a variety available for buyers with small deposits looking to get a mortgage.
As market demand is still high following the first national lockdown, more options will enable more people to move home.
The number of products has increased drastically during December, which is a positive sign for the market as we move into the new year.
What do these changes mean for the property market?
The stamp duty deadline is now only a few months away and concerns for the market are growing. Many are looking to the government to protect the transactions that are already underway, which risk falling through if they cannot benefit from the tax holiday.
However, there is also positive news for the market. The housing market remains open, and more high loan-to-value mortgages are becoming available.
Keeping the market stable is key as we go into the new year. Home Legal Direct’s director, Oliver Meddick, shared his thoughts on the future of the market: “While there is a massive focus on the stamp duty deadline, I can still see huge optimism in the marketplace, with lenders easing criteria and more increasing their loan-to-values.
“So, while many will feel the stamp duty deadline is an issue, in my opinion so many more are wanting lenders to allow them to buy, which will see a flood of buyers returning to the market.
“There is more long-term value in the ability to borrow money and buy the property you want in an upwards pointing market than the short-term gain of stamp duty relief.”
Contact Home Legal Direct
Home Legal Direct is here to guide and support you throughout the course of your transaction. As the future remains uncertain, our dedicated team of advisers is here to answer any questions you have along the way. Contact us today!
Peter Joseph is CEO at Home Legal Direct
