Extension of the government’s stamp duty holiday

Nick Leeming, Chairman of Jackson-Stops, comments on the extension of the government’s stamp duty holiday

"It is excellent news that the Chancellor is extending the Stamp Duty holiday in this way, thereby saving thousands of transactions that are currently at risk due to the logjam in the market and reducing the potential of another cliff edge later this year. The announcement of a phased approach to the holiday’s end until September is particularly welcome at this point in the year as we enter a traditionally active period in the market. This will provide certainty to buyers over coming months and will safeguard against transactions falling through in a few months’ time, giving the market the best chance of thriving in the long term.

“The stamp duty holiday has been incredibly effective in supporting the market through these challenging times. Our research shows that there are now 16 buyers chasing every available property*. This demand has in part been driven by stamp duty relief, as well as buyers’ reassessing their property needs to better accommodate changing lifestyles.

“Today’s extension will also help protect thousands of jobs which rely on the property market, including tradespeople, removal companies and suppliers of white goods, at a time when economic conditions remain tough. My hope is that this budget is now followed up by a progressive approach to taxation and reform which will support a thriving property market for years to come.

The 95% mortgage guarantee scheme:
“The Government’s commitment to stimulating the housing market is commendable and today’s 95% mortgage guarantee scheme will be welcomed by the entire industry. We expect it will be heavily supported by first time buyers who are a vital component of the UK housing market, historically accounting for in the region of 40% of all transactions.

* Jackson-Stops analysed new buyer registrations and new listings across the Group’s network from July 2020 – January 2021 to determine the buyer to vendor ratios for each month. London was excluded from the analysis.