Stamp duty holiday: the key timings you need to know
Keen to take advantage of the Stamp Duty holiday and save up to £15,000? Then you should ideally agree a deal to buy a home before Christmas, according to the latest house price index from Zoopla.
Keen to take advantage of the Stamp Duty holiday and save up to £15,000? Then you should ideally agree a deal to buy a home before Christmas, according to the latest house price index from Zoopla.
The time it takes between agreeing a sale and completing is normally just under 100 days. Our research shows that 92% of all sales agreed in November typically complete by the end of March the following year. This figure drops to 54% for sales agreed in January – and 17% in February.
But this is no ordinary housing market. The sales pipeline is now 50% bigger than a year ago. There are 140,000 more home sales in the system, creating pressure on estate agents, lenders, valuers, conveyancers and other professionals in the housing market.
And this sheer volume of business could lead to the buying timeline increasing in the short term, especially in the Greenwich borough, as currently the time it takes to receive the Local Authority Search back is now running at a mind boggling 8 weeks!
Those who leave it to January to start their search for a home will be cutting it fine.
Just half of sales agreed in January will convert into a completed sale by the end of March so those looking to beat the stamp duty deadline will need to be well prepared.
What’s driving the boom?
The pandemic has led many people to carry out a once-in-a-lifetime re-evaluation of their home, and this has been the main driver of buyer appetite.
The stamp duty holiday, which ends on 31 March 2021, is considered more of an ‘added bonus’ for buyers to complete before next April. The temporary tax break means that nearly nine out of 10 property transactions are no longer subject to stamp duty.
How can you improve your chances of beating the stamp duty holiday deadline?
If you’re looking to sell your existing home and move up – or down – the housing ladder before the stamp duty holiday ends, then you’ll need to get prepared well in advance.
You could shave weeks off the transacting timeline by laying the groundwork now. Consider listing your home for sale and signing up a conveyancer (solicitor) at the same time so the property is 'contract-ready' as soon as a deal is agreed, for example.
Finding an agent before Christmas and instructing a conveyancer to prepare all the sellers legal information will be essential to boosting the chances of saving up to £15,000.
Beaumont Gibbs have over 100 years combined sales experience and have the know-how and drive to get sales agreed and over the line.
If you are thinking of buying or selling now and wish to take some advice, please call us on 020 8319 7600 option 1 for the sales department.
Good luck and happy hunting.