A leading property data consultancy has called for the stamp duty holiday to be extended but, unlike many other organisations, has provided the data to explain why the Chancellor should pay attention.
TwentyCI says there are 515,000 sales between sale agreed and completion at the moment, a 44% increase on the same time last year.
While there are 485,000 properties for sale, there are 294,000 sale agreed without searches ordered and 222,000 sale agreed with searches ordered.
“The message should be clear – there are significantly more properties in a sales progression state today than at any time since our records began in 2008,” says Ian Lancaster (left) CEO TwentyCi Group.
But he says the Chancellor should realise that this is a risk and that the longer progression times become, the more chain breaks occur, the more sales agreed fall through.
“We have reported this in recent client briefings suggesting that a 30% increase in fall-throughs wipes over £4 billion from the UK Gross Domestic Product (GDP).
Using data form its sister company ViewMyChain, it is also claimed that the other risk is to agents.
£1.8 billion commission
The current pipeline represents commission for estate agencies totalling £1.8 billion, which if the sales can be processed should go somewhere towards topping up agency coffers.
“Our view remains that the government has an opportunity to get ahead of this impending issue and review the stamp duty holiday,” says Lancaster.
“This could be achieved either by announcing an extension or amending the 31st March end date to taper off beneficiaries to avoid the “cliff edge” of 325,000 people who risk missing out.”