With the Stamp duty holiday deadline looming, Rishi Sunak is considering extending it by six weeks
News regarding the Stamp duty holiday has been quiet recently, however, according to The Telegraph, Chancellor Rishi Sunak is considering extending the holiday until mid-May.
There are fears many buyers could fail to meet the current March 31st deadline to take advantage of the relief, which raised the minimum threshold for paying the tax from £125,000 to £500,000.
There is no news when the potential announcement could be made, however, the news that the chancellor is still contemplating the extension offers a glimmer of hope not seen since the high-profile petition was originally accepted for debate last month.
The Stamp duty holiday has been one of the catalysts for the strong property market seen last year and into the start of 2021 alongside the pent-up demand from the first lockdown and the change of priorities of buyers regarding outdoor space and home offices.
Miles Robinson, head of mortgages at online mortgage broker Trussle, said: “The news that the Chancellor of the Exchequer, Rishi Sunak, is considering a six-week extension to the stamp duty holiday offers a glimmer of hope to buyers racing to beat the current deadline of 31st March.
“The stamp duty holiday has caused unprecedented demand within the market. At Trussle, we saw a 63% increase in mortgage applications in December and a 15% increase in January, when comparing the same periods year-on-year.
“However, the surge in demand has triggered long delays in the processing of transactions. It currently takes 134 days to complete on a property in the UK, and it’s been reported that one in five buyers are facing more than a six-month wait for completion. Therefore, a potential six-week extension could prove invaluable to the estimated 100,000 property purchases currently underway.”
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