We have seen many updates and changes in the property industry over recent weeks. From heightened calls to extend the stamp duty holiday following the statement released by the Treasury, to the return of high loan-to-value mortgages to market, it has been far from a quiet month. With the end of 2020 in sight, many are speculating on what this could mean for the industry as we head into the new year.
Calls to extend the stamp duty holiday are still being heard
The market continues to react to the news that there are no plans for an extension, or tapering, of the stamp duty holiday. Following the statement issued by the Treasury, many homebuyers feel concerned about the progress of their transactions. With reports that almost a third of buyers will pull out if they miss the deadline, the effect that this could have on the market is uncertain. However, calls for an extension, or tapering, of the planned stamp duty deadline, are still being heard. Many are looking to the Chancellor to allow more transactions to benefit from the tax savings, through either an extension or tapering of the deadline. These calls look set to continue into the new year as the 31 March deadline draws ever closer.
LTV’s come back to the market
There is good news for homebuyers, as high loan-to-value mortgage deals come back to the market. New products are available from lenders such as Barclays, NatWest, and many more. With the options multiplying, there is now a variety available for buyers with small deposits looking to get a mortgage. As market demand is still high following the first national lockdown, more options will enable more people to move home. The number of products has increased drastically during December, which is a positive sign for the market as we move into the new year.
New Tier 4 guidelines introduced
The introduction of Tier 4 has left many parts of the country in disarray. In these areas, socialising with members of other households is off-limits. You may only leave your home if you have a legitimate reason. These include going to work, the shops, and moving home, to name a few. While the news that home moves can still take place being well received, there are strict guidelines to be followed. Viewings are still allowed to take place where relevant social distancing and PPE measures are adhered to. Removal firms can still enter properties, but it is advised that those outside of an individual bubble do not help with the move. Guidelines are being updated regularly and with more areas preparing to go into tier 4, it is advised to follow updates from the Ministry of Housing, Communities and Local Government if you have a move underway.
What do these changes mean for the property market?
The stamp duty deadline is now only a few months away and concerns for the market are growing. Many are looking to the government to protect the transactions that are already underway, which risk falling through if they cannot benefit from the tax holiday. However, there is also positive news for the market. Even in Tier 4 locations, the housing market can remain open, and more high loan-to-value mortgages are becoming available. Keeping the market stable is key as we go into the new year. Home Legal Direct’s Director, Oliver Meddick, shared his thoughts on the future of the market:
“While there is a massive focus on the stamp duty deadline, I can still see huge optimism in the marketplace, with lenders easing criteria and more increasing their loan-to-values. So, while many will feel the stamp duty deadline is an issue, in my opinion so many more are wanting lenders to allow them to buy, which will see a flood of buyers returning to the market. There is more long-term value in the ability to borrow money and buy the property you want in an upwards pointing market than the short-term gain of stamp duty relief.”
Contact Home Legal Direct
Home Legal Direct is here to guide and support you throughout the course of your transaction. As the future remains uncertain, our dedicated team of advisers is here to answer any questions you have along the way. Contact us today!