Will there be a Stamp Duty Extension?
Extending the deadline for the Stamp Duty Holiday by at least another month to reflect the new national lockdown seems like the right thing to do, and I’m sure this will be on Rishi Sunak’s agenda.
Following on from Prime Minister, Boris Johnson’s speech on Monday, in which he imposed a third national lockdown, mortgage experts, such Stephen Kerrigan of MortgagesRM – Fee Free Mortgage Advisor in Doncaster are predicting an extension on the stamp duty holiday deadline.
Speaking to Stephen Kerrigan, he mentioned that it is critical that the government reviews this stamp duty holiday, and either announces an extension or amends the tax payment date so that first-time buyers can still take advantage of the holiday, to avoid those who are currently in the process of buying their first home.
As the entire nation are now experiencing life back in a national lockdown for the third time, more must be done to help young people get on the property ladder and give the housing market some security in what will be a vary turbulent few months.
Government-backed purchase mortgage guarantees for borrowers would be a great way to reinstall confidence in the lending market. therefore, if the term of these guarantees were for five-years, for example, the inflation of the housing market during the medium term would wipe off any negative equity on those properties.
However, there will be now be considerably more logistical issues for the simple reason that a lot of people will be working from home. Lenders, valuers and conveyancers are already experiencing bottlenecks and delays given the sheer number of applications going through and the administrative upheaval caused by the previous lockdown back in November 2020.
It would not be surprising if the treasury makes an announcement this week about extending the stamp duty holiday to keep demand alive and give the housing market some much needed wiggle room.
Technically, it is business as usual for the housing market but in practice that’s simply not the case. Transactions are already under a lot of pressure and the new lockdown will make matters even more incredibly challenging, as people work from home or fall ill with the new strain of the coronavirus.
Extending the stamp duty holiday is a way for the government to give first-time buyers something to cheer about while in Lockdown, in a way, it helps build their confidence and continue to save for their dream first home.