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Extend stamp duty holiday! 515k sales now between exchange and completion

Latest data from TwencyCI shows 44% more properties between sale agreed and completion than would normally be expected.

Nigel Lewis

board stamp duty

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.

data“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.”

November 6, 2020

One comment

  1. We remain available to ANY estate agent that wishes to help to speed up transactions. Prepare Venders for a Sale by getting more data up front and enable buyers to engage with Searches as soon as a purchase is agreed where a Search Pack is not on order.
    Conveyancing association stated yesterday to us that:

    “…the problem is that the data shows that searches are not being ordered by the buyer conveyancer until 6.4 weeks into the process – that is worse because of the financial concerns so conveyancers now are waiting until the mortgage offer comes in before spending the dosh in case their client can’t afford to buy. The seller obviously can afford to sell and will get more for the property if they have resolved any legal issue, therefore it is in their interest to pay for the searches. It is also in the buyers interest to accept the seller’s search if it is free (and Search Code compliant) to it makes sense for the seller to pay for the search.”

    We can take horses to water, but agents need to decide whether they stick to old practices or make small changes to help speed up transactions.

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