Should the government extend Stamp Duty holiday?
Pressure is mounting on the UK government Chancellor Rishi
Sunak to extend the stamp duty holiday in order to avoid thousands of property
purchases falling out of bed because they cannot meet the 31 March deadline.
·
Experts warn thousands of property transactions
will run out of time and collapse
·
Thousands of Mortgages approved on the basis
that no stamp duty is payable
·
Tens of thousands will miss the 31 March
stamp duty holiday deadline
·
Borrowers could have to find up to £15,000
more to fund their purchase
·
Lenders were may withdraw mortgage offers,
causing thousands of transactions to collapse
·
Not enough man power in the market to get
these transactions through before 31 March 2021
·
Mortgage processing delays, shortage of
surveyors and solicitors available to complete legal work
·
Bank of England figures published this
morning reveal a spike mortgages approved in October
·
Mortgages up 5.9% on previous month to 97,532
and 51% up on the same period last year.
·
HMRC figures showed housing transactions hit
105,630 last month, up 9.8% on September 2020
·
Transaction completions generally follow
mortgage approvals by between three and five months
·
Zoopla is predicting transactions in December
to hit 140,000, the highest December since 2006
·
Mortgage rates rising despite record low
Bank of England base near zero lending rates
·
Mortgage lenders hiking rates amid the scramble
taking advantage of borrowers’ panic
Anthony Codling of property analysis firm Twindig said: 'The
average rate for a new 95 per cent 2 year-fixed rate mortgage was 4.09 per cent
in October 2020, an increase of 35 per cent since the start of 2020, according
to the Bank of England.
House prices shrugged off the Covid economic hit from
Covid-19 have risen by about 6% this year.
Andrew Wishart, UK economist at the research house said:
'The usual channels through which a recession hits the housing market, of rising
unemployment and mortgage payment difficulties, have been mitigated by the
furlough scheme, mortgage payment holidays, and a moratorium on
repossessions.
'Meanwhile, the market has been boosted by pent up demand
from the first lockdown, a revaluation of space needs due to working from home,
and an extra kick from the stamp duty holiday.
'But the policy support that has protected and boosted the
market this year is due to be withdrawn in 2021, just when we expect the
unemployment rate to peak at 7%.
'The housing market has never escaped unscathed from a drop
in employment of the scale we forecast.
'In fact, in isolation the historical relationship between
employment and house prices suggests a 25 per cent house price crash is in the
offing. Our view, however, is that an annual fall closer to 5 per cent in Q4
2021 is more likely.'
Tombs added: 'The outlook remains exceptionally unclear,
given that government policies might change; the stamp duty holiday could be
extended, or the government might follow through on plans to introduce a new
mortgage guarantee scheme.' Source: This is Money.co.uk
Other Financial News
·
25,000 retail jobs in jeopardy as Debenhams
and Arcadia collapse
·
Businesses may force us to be coronavirus
Covid 19 vaccinated says government minister
·
Growing divide between rich and poor and
north and south of England
More articles and money news available at Money Tips Podcast - www.moneytipsdaily.com
·
Philip Green’s Arcadia could go bust
·
He is in Monaco sitting on his billions
·
Buying Arcadia and BHS, a classic BRR
·
He bought businesses and got his cash out
·
Mike Ashley wants to buy the assets cheap
·
Business Buying
Opportunity Webinar
·
UK introduces Tier system lockdowns
·
Biggest economic decline in 300 years
·
UK national debt now exceeds £2 Trillion
·
Government borrowing will reach £394bn
·
Average
house prices reach an all time high
·
Property marketing slows down in London
·
How a crash will affect your pension plan
·
Why
live in expensive town centres anymore?
·
Thousands
trapped in unsellable leasehold flats
·
Government extends
ban on landlords evicting tenants
·
Self-employed, have
you claimed your government grant?
·
Why UK Property
prices rising after stamp duty cut, despite the downturn?
·
New planning rules will open up more
opportunities to make money in
property
·
You can create a second income during the
lockdown…and come out stronger
·
Learn how to make money from property without
deposits, mortgages or cash
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more articles at www.moneytipsdaily.com
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