Over 100,000 transactions could benefit from SDLT extension

Over 100,000 transactions could benefit from SDLT extension

There has still been no official statement from the government regarding the ‘leaked’ potential six-week extension to the stamp duty land tax (SDLT) holiday, which the Daily Telegraph reported on last weekend, yet Rightmove has estimated that if the extension takes place up-to 160,000 transactions could benefit from the tax saving.

If 160,000 transactions were successful, it could save buyers £1bn in tax.

The extension would also mean the vast majority of sales that were agreed by the end of 2020 would complete in time to save on stamp duty.

There are an estimated 412,000 sales still currently in the legal process that were agreed last year across Great Britain.

Tim Bannister, Rightmove’s property expert said:

 “We know the stamp duty holiday was intended as a temporary stimulus for the market, but the delays we’ve seen in the home-moving process have been through no fault of the buyers and sellers who agreed a sale last year and who are now desperately trying to get their deals over the line. The delays have been a result of the huge number trying to go through, along with the many challenges of the people involved in the process working from home. If there was a six week extension it should give the majority of the sales from last year the chance to complete in time.”

However, this ray of hope will help buyers to breathe a sigh of relief as the 31st March deadline continues to draw closer. But, conveyancing departments have been working around the clock, battling against log jams and managing client expectations often at times when clients don’t understand the hold ups and the processes.

Managing client expectations continues to be a huge pressure conveyancers face, whether the holiday is extended or not. O’Neill Patient LLP (ONP) has called upon the sector to work together to manage buyer expectations.

With the huge number of house sales going through the system, the industry is struggling to cope with this unprecedented demand. From valuations to mortgages, conveyancing and searches, the pressure is immense. It is made even more difficult as many firms are short staffed with illness, home schooling challenges and people working from home.

Andy Scaife, CEO at ONP Group, said:

“Some clients are understandably disappointed that they are likely to miss the stamp duty deadline. For some time now, we have been doing our best to manage buyers’ expectations by letting them know what the stamp duty charge will be if they cannot complete by 31 March.

“Whilst we will try to do everything we can to complete as many of those transactions in our pipeline, it is better to know now rather than on the day of completion so at least they can try to make some preparations to cover the extra cost, should it arise.”

Jennifer van Deursen

Jen is the Senior Media Officer for Today’s Conveyancer, Today’s Wills & Probate  and Today’s Family Lawyer. Having gained a degree in Multimedia Computing, Jen fell into a content role after successfully applying for a job at Cheshire Police. During her 6-year service, she took on the role as personal Press Officer under the first Police and Crime Commissioner for Cheshire and worked in the busy press office for the force. Jen has experience in the marketing and communication sphere, which stems from her time in the public sector, private care sector and now here at the Practical Vision Network, where she can utilise her skills and challenge herself further.

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