June was an exceptionally busy month for everyone in the property market. In fact, recent months have seen transaction levels markedly up on what we would typically see for this time of year, as buyers have battled to complete sales ahead of, first, the original Stamp Duty holiday deadline in March and, most recently, the extended deadline at the end of June.
For example, the latest data from HM Revenue & Customs shows that there were an estimated 103,000 purchases in May. Only once in the last decade – back in 2014 – has May seen a higher level of property sales.
Of course, in the rush to meet that end of June deadline, it was easy to forget that this was only part one of the phasing out of the Stamp Duty holiday. Sure, the nil rate has fallen from its previous level of £500,000, but it has only dropped to £250,000 until the end of September. It’s only after this point that it will return once more to its standard level of £125,000.
As a result, while activity levels may drop off just a touch from the frenzied scenes we saw at the start of last month, there is still an important deadline on the horizon for brokers to be aware of. Just as we saw over the last few months, buyers are going to want to get their transactions over the line ahead of that date, with ideas aplenty of better ways to spend that money that would otherwise have landed in the taxman’s coffers.
So now represents an excellent point to take a step back and reflect on the lessons we’ve learned from the last deadline which improve the chances of helping clients complete those purchases in time.
Picking the right partners
It can’t be underestimated how important it is to think carefully about which conveyancing firm to work with. All brokers will have their own horror stories of seemingly simple cases that turned into nightmares off the back of unexpected delays, but those delays can be avoided if you work with the right conveyancing firm.
An important consideration here is the fact that all purchases are different. Some clients may be making use of schemes like Help to Buy or Rent to Buy, others may be purchasing a Shared Ownership property, while some will be purchasing in order to add to their investment portfolio.
Yes, these are all purchases, but just as the advice process will be different for each, so too will the legal side. Working with a legal partner that not only understands these differences, but boasts experience of tackling these cases improves your chances of completing swiftly.
Similarly, it’s vital for brokers to work with firms that they trust. Picking a panel manager is always going to be about more than cost – brokers want to know that there is a support and service network in place, so that when an issue pops up, as it almost invariably does, there is someone on hand to help keep that case moving.
Getting it right first time
Having the right legal partners in place can only take you so far, however.
We know that one of the most common, and yet easily avoidable, causes of legal delays with a property purchase comes down to discrepancies in the details provided about the clients and the case.
It can be something incredibly simple, like the name of a buyer not quite matching the name on the identity documents provided, but these small issues will raise red flags and need clarification. This will obviously take time and mean that the case inevitably takes longer to conclude.
Brokers are very familiar with the need to be on top of detail when it comes to things like a mortgage’s terms or a lender’s specific lending criteria. That same approach, spotting any potential issues at the outset and removing them, can also pay dividends when it comes to the legal paperwork.
Learning lessons
It’s important for brokers to take a breather now that the June deadline has passed.
While activity may drop off a little in the next month or two, there is another big tax deadline just a matter of months away, and there will undoubtedly be a similar ratcheting up of pressure as we approach September.
Learning the lessons of this initial deadline will ensure that brokers can help as many clients as possible complete their purchases in time and enjoy a welcome tax saving.
Karen Rodrigues is sales director at eConveyancer