Stamp duty holiday extension sought by majority of homebuyers

January 24, 2021 by Heidi

Home owners

A survey from Enness Global shows that the majority of those looking to buy a home in the UK want the government to keep the current holiday on stamp duty going past the planned deadline.

The stamp duty suspension on all property transactions of £500,000 or lower was introduced by the government last year, as it sought to kick start the housing market after lockdown, but it is due to come to an end on March 31st. However, the Enness Global survey found that 67% of people seeking to buy a home want it to be continued past that date as they try to get transactions completed.

Furthermore, almost half of those that Enness Global spoke to – 48% – stated that they were worried they would not succeed in completing property transactions before the deadline.

Speaking to Mortgage Strategy, a spokesperson for Enness Global said:

“It’s clear that since the introduction of the stamp duty holiday last year, the housing market has exploded into life with mortgage approvals, transactions and house prices all increasing notably.”

Indeed, while there is little question that this policy helped the housing market to recover very quickly, mortgage lenders and estate agents are both expressing concern that if it ends suddenly, it could bring about a spring collapse in transactions and prices. There has been no word yet from the government about whether there will be an extension.

Extending it would be welcomed by most advisors with CeMAP training, as it will lead to more clients.