Agents urged to back extension campaign for stamp duty holiday

NAEA Propertymark continue to call for a Stamp Duty/LTT/LBTT holiday across the four nations of the UK to be extended to avoid unintended consequences, such as transactions falling through, house prices falling, and a sudden loss of momentum in the markets, and the trade body wants your support.

Propertymark wants all agents to join their campaign to extend the cut to stamp duty by writing to their local MP outlining their experiences and asking them to make representation to the chancellor ahead of the Budget on 3 March 2020.

“Our collective efforts and your role with your local representatives are vital in making the campaign effective,” Propertymark says.

In their representation to the Budget 2021, Propertymark has called for an extension to the SDLT cut for at least another six months and the allowance that those who have an offer formally accepted prior to the end of the current cut to stamp duty or any further extension, qualify for the relief.

Mark Hayward

Mark Hayward, NAEA Propertymark chief executive, commented: “The boom, caused by the property tax holiday, has been hugely beneficial for the housing market; however, the property tax cliff edge on 31 March 2021 could cause thousands of sales to fall at the final hurdle and have a knock-on and drastic effect on the housing market which has recovered well from the COVID-19 slump.”

A group of 50 Conservative MPs have already called on the chancellor to extend the stamp duty cut for properties worth less than £500,000 for a further 12 months in a major boost alongside The Telegraph’s ‘Stamp Out the Duty’ campaign, which launched last week.

The MPs, who form the Northern Research Group (NRG), are reiterating concerns from industry experts that an end to the stamp duty holiday will trigger a sharp drop  in property prices and transactions this year.

John Stevenson

The NRG is led by former Northern Powerhouse minister Jake Berry, who has warned Sunak that “to relinquish support now would cause long-term damage to large parts of the North and weaken our recovery”.

John Stevenson, Conservative MP for Carlisle, said: “What the Chancellor did was very, very beneficial for the housing market.

“The stamp duty cut gave it confidence. Maintaining that confidence in the housing market is beneficial for the wider economy. The housing market is a big chunk of the economy… it has a huge supply chain behind it.”

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2 Comments

  1. Tcos

    Disclaimer : I am a Letting agent. I just wondered if it would not have been better to have a phased out process. So the cut off is in March but any sales agreed before the cut off date have an additional 3 months to go through and still benefit from the discount. Rather than cutting it off point blank it seems logical to have a period of time to allow the last number of sales to go through and ease a bit of pressure? Would that be a compromise?

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    1. letstalk

      As a fellow lettings only agent, but with the disadvantage of being far too closely affected by the whole thing (currently buying a new build that has been delayed due to Covid with completion now set for 8 April 2020 subject to no more restrictions) I would agree!

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