28 Jan Will the stamp duty exemption be extended?
That is the question on a lot of peoples minds at the moment.
We may have to wait until the next budget in Match this year to find out.
The holiday has been well received but between now and March mortgage companies and solicitors are backlogged and over worked trying to get all of these transactions through in time.
Mortgage rates are low but with tougher restrictions this could also prove a problem and results in delays and the deadline not being met.
This could result in property sales falling through before they make the deadline.
These pressures along with it feeling like a positive move for the economy in general could result in the government extending the holiday to avoid bad news and to keep the housing market moving and the help the economy get back on its feet.
If the stamp duty holiday does end it will likely mean less investors and buyers on the market for a period of time which would mean less sales and the housing market slow and prices begin to come down in a lot of areas across the country.
If price came down considerably this would create opportunities for investors to purchase at a lower price and at some point, encourage buyers to come back but it would not doubt impact on slowing the housing market, transactions and prices coming down.
It will be very difficult for anyone purchasing a property now to complete in time to benefit from the stamp duty holiday so it would be sensible to wait and see if the stamp duty holiday is extended in the next budget, if not before or be patient and wait for the housing market to settle and prices to come down later in the year.
It would be in the best interests of everyone, the sellers, the buyers, investors, agents and the economy for the government to extend the deadline and keep the positivity move forward in 2021!
Haven’t we all suffered enough change and uncertainty over the past 12 months?!
Heritage Investment Group, HMO Premier & Property Master Academy