Good news for buyers trying to get on the housing ladder

22 Jul 2020

by Helen Thring

The legendary American author Mark Twain famously quipped, “Never put off till tomorrow which may be done the day after tomorrow.” While this advice might work well for tasks like mowing the lawn or fixing that squeaky door, it’s not applicable to the housing market right now. In fact, when it comes to selling or buying a home, especially with the current Stamp Duty holiday, procrastination could cost you thousands of pounds.

The UK housing market is currently facing delays due to the impact of the national lockdown and various local restrictions. These disruptions are causing bottlenecks in essential parts of the moving process, such as mortgage valuations, property surveys, and conveyancing. If you’re thinking about making the most of the Stamp Duty holiday, which could save you up to £15,000, time is of the essence. To stand a chance of completing your move before the 31 March 2021 deadline, you’ll need to act swiftly.

Why Is There a Rush?

The Stamp Duty holiday, introduced by the government to stimulate the property market after the pandemic lockdown, is set to end on 31 March 2021. This temporary tax relief means that buyers can save up to £15,000 in tax when purchasing a home. However, completing a property transaction is never a quick or simple process, and with current delays, it’s becoming even more challenging.

According to an article recently published by The Sunday Times, if you’re planning to sell your home and complete the sale before the tax break ends, you should have put your property on the market by 12 October 2020. That’s because several key steps in the buying and selling process are taking longer than usual. These include:

• Mortgage valuations
• Property surveys
• Local authority searches
• Conveyancing work

All of these are critical components of a property transaction, and any delays in these areas could prevent you from completing your sale before the March deadline.

What the Experts Are Saying

The concerns about delays in the housing market have been echoed by Today’s Conveyancer, a respected property law website. It reported that before the Covid-19 pandemic, it took an average of 79 days from listing a property to finding a buyer, and a total of 187 days from putting the home on the market to moving in. Now, with the current backlog and ongoing restrictions, these timeframes have extended even further.

As of mid-October, the Stamp Duty holiday deadline is just over five months away, but given the current circumstances, this window of opportunity is shrinking fast. Buyers and sellers need to act quickly if they want to take advantage of the financial savings on offer.

Delays in the Process

The delays in the property market aren’t just affecting one part of the process. Instead, they’re impacting multiple steps, which can lead to a cascade of problems. Mortgage valuations are taking longer due to increased demand, and the same goes for property surveys. Local authorities, which carry out essential property searches, have been hit hard by the pandemic, leading to significant delays in providing search results. Finally, conveyancing solicitors are overwhelmed with the number of transactions, further extending the timeline for completion.

How to Speed Up the Process

Thankfully, there are steps that buyers and sellers can take to help expedite the process. According to Today’s Conveyancer, following these key tips can make a difference:

1. Sellers should instruct their conveyancer when listing the property for sale. The earlier your conveyancer is involved, the sooner they can begin preparing the legal documentation needed to sell the property. This includes completing the Propertymark Sales Protocol, which helps streamline the sale process.
2. Sellers should ask their conveyancer to review property information forms and titles early on. Identifying any potential legal or administrative issues at the beginning can prevent delays further down the line. If there are any questions about the property’s title or history, these can be addressed before they cause problems.
3. Buyers should obtain a mortgage decision in principle before making an offer. This is an essential step that can save time later in the process. Having a mortgage agreement in principle gives you an advantage when making an offer, showing the seller that you’re serious and financially prepared to proceed.
4. Buyers should instruct a conveyancer before making an offer. Having a conveyancer lined up from the outset can help avoid delays after the offer has been accepted. The earlier your conveyancer starts working on your behalf, the quicker the sale process can move forward.

These proactive steps may help buyers and sellers navigate the delays in the current market and stand a better chance of completing before the 31 March Stamp Duty deadline.

The Importance of Acting Now

It’s now clearer than ever that anyone hoping to buy or sell a property before the Stamp Duty holiday ends needs to act immediately. With mortgage lenders, surveyors, local authorities, and conveyancers all working through unprecedented levels of demand, the typical property transaction timeline has been significantly extended.

Waiting any longer to list your property or start the buying process could mean missing out on the financial incentives currently available. For sellers, that might mean fewer interested buyers as we approach the Stamp Duty deadline, and for buyers, it could result in losing out on up to £15,000 in savings.

How We Can Help

At Duncan Yeardley, we’re committed to helping you make the most of the current market conditions. Our experienced team understands the pressures buyers and sellers are facing, and we’re here to guide you through the process from start to finish. Whether you’re looking to sell your home or find the perfect property before the Stamp Duty holiday ends, we’re ready to assist.

Don’t wait – the clock is ticking, and delays in the process are only getting longer. Call us today on 01344 860121 to discuss how we can help you beat the backlog, secure a sale or purchase, and take advantage of the Stamp Duty savings before it’s too late.