Two thirds of brokers would support extension to stamp duty deadline

Essex Home Finance
Twenty7Tec asked: “If you were offered a three month extension to the stamp duty holiday, would you take it?”. Two thirds of brokers voted in support.
The latest Finance and Property News2

When asked whether the Chancellor should extend the 30th June stamp duty relief deadline, two thirds of brokers voted in support during a new survey.

Twenty7Tec surveyed its 14,000 broker clients and asked: “If you were offered a three month extension to the stamp duty holiday, would you take it?”.

Of those who expressed an opinion, 66.43% said yes to the extension and 33.57% said no. One in two of all respondents said that they would ‘absolutely’ extend the scheme.

Of those who voted ‘yes’, common reasons included to relieve pressure on solicitors, to free up the backlog in removals firms, and to keep the the market buoyant for home buyers.

The ‘no’ group wanted a ‘return to normal buying’ and a stabilisation in the housing market. Brokers said that the stamp duty holiday was artificially pushing up prices, while others said that stamp duty should be ‘changed for good or left alone’.

James Tucker, CEO and founder of Twenty7Tec, said: “The survey shows a significant majority of brokers voting yes to extending the stamp duty holiday. They know that the tax relief has kept them busy over recent months, and the vast majority are keen for it to remain that way.

“However, a good number of the respondents who were opposed to extending the relief named a need to return to normal workloads for themselves and solicitors as the main rationale. 

“As of 1 July, the £250k-£500k relief disappears, and we believe that this will have some effect on the market. Looking at our figures, the proportion of ESIS mortgage documents that are produced for buy to let mortgages under £250k is higher than it is in the £250-£500k bracket. So the relief which remains available is more likely to be of interest to landlords, first time buyers and properties outside the South East.

“Equally, we understand that house prices have risen 9.5% since the tax holiday was introduced, although there are now reports that prices might drop by up to 5% if the stamp duty relief deadline is not extended.”

Niki Cooke, head of intermediaries at Twenty7Tec, added: “I’ve spoken to leaders at brokers and intermediaries over recent days on this topic. Beyond the headline statistics, there’s a real split in brokers’ opinion about whether to extend and why. Was the tax relief programme a success? Well it definitely kept the market moving in what were challenging circumstances. But brokers are now asking the biggest of questions: ‘Should we have stamp duty tax at all for average priced houses?’ and ‘How do we make sure that we treat people fairly who would otherwise miss the June 30 deadline?’ Those are the challenges for the Chancellor over coming days.”

Original Article from Financial Reporter 28/06/2021

Get In touch

Leave this field blank
Mobile / Home Number
Please choose the closest match to your Mortgage Needs
  • Choose
  • First Time Buyer
  • Help To Buy
  • Homemover
  • Remortgage
  • Buy to Let
  • Equity Release
  • Insurance
  • Home Utilities
  • Nothing found
Essex Home Finance

(01245) 398466

Call Anytime

Address : 8 Kingsdale Business Centre, Regina Road, Chelsmford, Essex, CM1 1PE

Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.

Registered address: 1 High Street, Chelmsford, Essex, CM1 1BE.

Registered in England & Wales under number 10607263.

Your home may be repossessed if you do not keep up repayments on your mortgage.

We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).

There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.

There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. 

Our advice is covered under the Financial Ombudsman Service.  You may be able to submit a claim through the  EU Online Dispute Resolution Platform If you live outside the United Kingdom or if you prefer not to deal directly with the Financial Ombudsman Service.