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Allow ‘formal offers’ to be included in Stamp Duty holiday, says Propertymark

Proposal is within trade association's manifesto ahead of Rishi Sunak's 3rd March Spring budget.

Nigel Lewis

budget 2021 stamp duty

Propertymark has launched its manifesto for both the sales and lettings industries ahead of Rishi Sunak’s 3rd March Spring budget including a call for the Stamp Duty holiday to be extended.

Its Chief Policy Advisor Mark Hayward says the organisation is particularly worried by HM Treasury’s refusal so far to modify or extend the stamp duty holiday because it could cause “thousands of sales to fall at the final hurdle and have a knock on and drastic effect on the housing market which has recovered well from the Covid-19 slump.”

The trade association has some ideas up its sleeve for the Chancellor to ruminate on.

This includes extending the deadline past 31st March but also allowing transactions to be included in the Stamp Duty holiday that have a formal offer on the table prior to 31st March which has been passed to solicitors to prepare for exchange.

Overstretched

“Due to the ongoing impact of the Coronavirus pandemic many potential buyers are in a proceedable position but waiting for conveyancing, mortgage offers and searches from overstretched local authorities to be returned,” says its manifesto.

Other proposals in the Propertymark manifesto include an extension to the Help to Buy scheme for first time buyers should be extended, raise the Local Housing Allowance and establish a fund to help both landlords and tenants clear the rapidly-growing rent arrears debt mountain.

“It’s been an unprecedented year for everyone and this includes the housing sector,” says Hayward (pictured).

“The property market has remained remarkably resilient during the lockdown periods so far and the Government has prioritised a functioning property market.

“But there is still progress to be made and we’re calling upon the government to make these recommended changes in order to continue to support agents, landlords, consumers and the wider housing market.”

 

February 3, 2021

5 comments

  1. Formal offers are not legally binding in England. A memorandum of sale means nothing from a legal perspective. So, none of the ideas above are just not implementable.

  2. We’d just need some clarity around the meaning of formal offer – perhaps better linked to the issuing of a Memorandum of Sale?

  3. 100% best option
    If its agreed and proceeding BEFORE 31/3 the buyers should be given the same benefit
    Proof provided by agents sales memo and vendors lawyer confirming submission of contract to buyers lawyers

    #schimples
    #comeonrishi

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