Residential Property Update

HM Treasury met earlier this week to discuss, amongst other things, the current Stamp Duty deadline of 31st March 2021.

At the very beginning of the COVID-19 pandemic last year, the UK housing market took an instant hit as investors and those looking to move home paused for thought. As part of the wider stimulus packages introduced by Chancellor, Rishi Sunak the threshold for paying stamp duty in England and Northern Ireland was temporarily increased from £125,000 to £500,000.

The clear intent was inject some activity into the housing market, one of the most important economies in the country, and it worked.

Record numbers of house were placed on the market and buyers were keen to snap them up knowing that they could save up to £15,000 in stamp duty alone. House prices are around 6% higher than this time last year, though early signs of a slowdown have begun with house prices dropping around 0.3% between December 2020 and January 2021

The increased activity has led to high volumes of work for conveyancers that has, due to the pandemic and the looming stamp duty deadline, been condensed into a shorter time frame. Firms of solicitors have even taken the unusual step of refusing to take on new work, due to case levels and the demand for completion to happen on or before 31st March 2021.

Whilst the next 6-8 weeks will be very busy for conveyancing firms and estate agents, it remains to be seen if the UK Government will extend the Stamp Duty scheme any further and if not, what impact this will have on the market and the economy as a whole.

Media reports show that even though interest rates remain low, tighter lending criteria from banks is already having an impact on the number of houses coming to market.

At DFA Law, we have a very experienced residential property team offering a fixed fee all-inclusive price and so if you are thinking please get in touch for a no obligation quote but it may not be possible to complete before the 31st March 2021 as that depends on a number of factors outside of our control, but never say never!

email: property@dfalaw.co.uk

Telephone: 01604 609560