In the run-up to the end of 2020, there were many calls from property market specialists for the stamp duty holiday to be extended.
However, with Tier 4 rules in place, these calls have strengthened. With people not being allowed to mix indoors with anyone who is not from their household, it is clear to see this will impact on the buying and selling process.
Even though estate agents across the country, including ourselves, have worked exceptionally hard to create safe environments for buyers and vendors, it is natural many people will have misgivings with respect to mixing with others right now.
George Franks, a notable name in the London housing market said: “Though the Treasury has confirmed the Stamp Duty deadline of March 31 will stand, this government has backtracked and U-turned so many times that frankly anything is possible.”
George continued by saying; “Just a few days ago Boris Johnson was saying to cancel Christmas would be “inhuman” and yet Christmas, for millions, was cancelled overnight. The Housing Secretary, Robert Jenrick, has confirmed the sales and rental markets, and all associated markets in Tier 4 areas remain open, but in the eyes of a growing number of prospective buyers and sellers there’s a risk they’re starting to feel shut. The furlough goalposts have been moved time and again so why not the looming Stamp Duty deadline, which risks creating a cliff-edge market?”
A spokesperson for HM Treasury spoke in mid-December, saying; “The SDLT holiday was designed to be a temporary relief to stimulate market activity and support jobs that rely on the property market. The government does not plan to extend this temporary relief.”
Mark Arnold, chief executive at Kensington Mortgages, said; “This research demonstrates what we all intuitively know – that the stamp duty holiday has been very positive for the economy at a critical time. The threshold level should be considered ripe for permanent reform. The upper bound estimates of our analysis suggest that the Treasury could have its cake and eat it, achieving a fiscal surplus whilst boosting the economy. It could unlock housing market activity and pay for 4,000 additional nurses in one fell swoop.”
Mark continued by saying; “Furthermore, aside from updating the threshold to reflect real world house prices, the maintenance of the £500,000 threshold could address some structural problems with the UK housing market. It could lead to greater regional mobility – with ancillary trickle-down benefits – as well as also stimulate more downsizing, freeing up family homes and helping to address this vital stock shortage. We believe now is the time to be bold and keep the threshold at its current position, or at least consider amending it to a higher level than the previous £125,000.”
These are challenging times in the property market, but there is activity and demand for homes. At Sovereign House, we are keen to help you with whatever you need in the Hackney housing market. Why not call us on 020 8985 5800 or visit us at 213 Victoria Park Road, we look forward to assisting you with your property needs.