Will Rishi have to reconsider Stamp Duty Deadline of 31st March 2021?
I am hoping, and also think it is quite likely that the government will have to look to adding a small extension to the deadline of the 31st March 2021. Conveyancing solicitors will be overwhelmed by the number of completions at the end of March, as well as movers struggling to book removal companies as I have seen prior to Christmas. It will also stretch the capacity of mortgage lenders and local authorities to complete searches and transfer funds in what is predicted to be a crazily busy March for them.
If Rishi does agree to an extension I believe the this will not be announced until nearer the time, so possibly late February in my opinion. This will only benefit properties with offers already proceeding and will not encourage new sales. Therefore this won’t effects a ‘boom’ in sales in the first quarter of the year. However it will prevent purchases falling through due to the result of missing out on the deadline due to relying on the extra saving to be able to make the purchase.
If buyers miss out on the deadline some will take the hit and others may look for the seller to help to take the pain if it was possibly the sellers solicitor that caused any delays. I hope this will not happen and I have educated all my buyers and sellers with realist expectations. Education and communication is key from the beginning and managing expectations as well as having a professional estate agent chasing your sale through from start to finish. Making sure the milestones are met.
There may be a flurry of sales being agreed in early January looking to make this stamp duty saving. This maybe too late but as long as all the chain is educated and have good communication it is certainly possible with a good estate agent behind you to be able to help and push things along. I predict the 50% of offers agreed in January will certainly hit the deadline. This will also make chain free properties much more sought after! As we call them in the property industry ‘Hot Properties’.
I don’t anticipate there been a down turn in the market due to the stamp duty freeze ending. The market will continue to be buoyant throughout the new year. With sellers and buyer still continuing to re-evaluate their living situation and seeking more rural locations, gardens and home offices. Tyne Valley areas particularly Prudhoe area is increasing sought after by professionals and families moving out of the city centre looking for more rural locations with those countryside walks on the door step and still very commutable into Newcastle city centre for work. I personally am very excited for 2021!!
Kirsty Hodgson – 17th December 2021
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