Stamp duty deadline must be extended or risk economy, says leading estate agency
Carter Jonas joins growing chorus to extend stamp duty holiday March deadline ahead of parliamentary debate.
One of the UK’s leading estate agencies has swung behind the campaign to persuade HM Treasury to extend the looming stamp duty holiday deadline.
As MPs prepare to debate the subject on 1st February in parliament, Carter Jonas says the housing market’s multiplier effect on the economy, and the need for conveyancers to be given time catch up with the sales backlog created by the policy, are persuasive arguments for an extension of the stamp duty deadline.
Its comments are made within the company’s January market report.
“Following months of the global COVID-19 pandemic and its associated restrictions and lockdown measures, the UK economy has yet to return to pre-pandemic output levels,” says Lisa Simon, Head of Residential, Carter Jonas (pictured)
“The housing market, however, is not just past pre-pandemic figures, in many cases it is reaching 5-10-year record rates.
Multiplier effect
“A strong and growing housing market contributes to the wider economy and reflects consumer confidence, and this then leads to greater spending patterns and ultimately job creation.
“On a micro-economic level, buying and selling homes contributes to growth, as it stimulates additional expenditure in the local economy.”
Carter Jonas says a healthy housing market keeps a raft of different industries and trades going including estate agents, conveyancers, surveyors, mortgage brokers, banks and lenders, builders, architects, painters and decorators, interior designers, plumbers and electricians.
Paperwork pressure
An extension would also help alleviate the backlog of paperwork that is a result of current rates of house sales, mortgage approvals and transaction levels running at a 10-year high, Carter Jonas claims.
Rupert Reeves, its Head of Residential Sales for Newbury, says, “Due to Covid-19, reduced teams, and home-schooling pressures, many solicitors and surveyors are struggling to meet work deadlines, and it now takes longer to buy or sell a house than ever before.
“Understandably, there is a frustration felt by buyers and sellers, so giving everyone in the process some leeway will help get more deals over the line.”
Sadly, this will all be seen as sour grapes.
I am attempting to buy a studio flat from a client and I am now at the end of month 5.
Single property being bought with cash resources. No chain, mortgage or stamp duty.
My record for acquiring a property in Northampton is 4 working days, our local council takes 24 hours to undertake their searches.
So as a customer, the industry only has itself to blame. Though I do understand the dilemma. Hire more staff, train them and then let them go.
Not an easy choice, but as a long suffering customer I can see that prioritizing easy wins does not appear to be part of the business model.
I will be surprised if the Chancellor extends the Stamp Duty Holiday, but stranger things happened.