So, according to The Times, six weeks has now become three months.
I’m talking of course about the anticipated extension to the stamp duty holiday which has, according to a number of sources, already been decided by the Treasury and the Chancellor.
Instead of the 31st March, the next (and I suspect, last) line in the sand will apparently now be the 30th June.
Now, I fully appreciate there has been a lot written about the stamp duty holiday already, and those caught within the eye of the current storm, might feel mightily sick of it. But, let’s be frank here, this is hugely important to the UK housing market, and by extension, the UK economy because a fully-functioning and buoyant property sector can add a considerable amount to GDP.
So, while there are only a couple of days to go until the announcement is expected during the Budget, and while perhaps the decision has already been made, I still feel the need to put my two-penneth in, because it could make all the difference if we get this right. Who knows, the government might still be in listening mode?
Which probably tells you that I don’t think a straight three-month extension – if that is what we get – is the right decision. At present, we have conveyancing firms, and many other housing market stakeholders, bending over backwards in order to hit the current 31st March deadline.
Will the extension to the 30th of June help? Well yes it will for those cases currently with conveyancers who might have struggled to meet the initial date. Clearly, there will be transactions within the pipes which will now complete with the extra time available.
In a way, those cases are not the ones I’m worried about. Indeed, if the government had announced a simple taper for existing cases then that would have been it sorted. Essentially, you’ve got a mortgage offer or your case is already with a conveyancer and being worked on, then you qualify for the saving regardless of when you complete – although I suspect the government would still have wanted to put an end date on this.
Anyway, that’s not what we appear to be getting and, if we are just going to be getting a simple extension, then I suspect we’re going to find ourselves in the very same position again in May and June. With conveyancers, and everyone else in the process, working their collective you-know-whats off in order to meet another arbitrary deadline. And much worry and stress added to the mix for those who are relying on completing in order to secure the saving available.
However, a straight extension may well make things much worse for all stakeholders. It almost sends a message to those who haven’t engaged in the housing market yet to get their skates on, because now they have four months to complete, rather than one.
I suspect that many potential purchasers have looked at today’s rumours and immediately hit the property portals to see what’s available. And who is going to turn down this business when it comes through? No-one.
Even if you spell out how you’re not responsible if the transaction can’t complete by the end of June, firstly the consumer is clearly going to think that four months is enough to do this, and secondly, they might still place you firmly in the firing line should that completion not take place.
There has been much talk about whether this announcement simply kicks the can down the road, and I would suggest it does. But, what it is likely to mean, is thousands upon thousands of new ‘cans’ being kicked, and who is going to clear all these new ‘cans’ up?
Of course, I might not be giving the government enough credit here. A three-month extension might be just for those currently in the process, but if it is not, then I think we’re going to see a further surge in activity, particularly if it is coinciding with an easing of lockdown, and a frantic push from purchasers trying to conclude sales before this new date.
Again, the same problem, exacerbated, just a few months on.
No one is denying the fillip the stamp duty holiday has given the sector, but we have to think of the current workload and the current circumstances of those trying to work through these cases.
Putting the problem off does not help us; in fact, it probably makes the situation worse. We certainly need to avoid that.
Mark Snape is chief executive officer of Broker Conveyancing