Further calls to Government to extend Stamp Duty cut

A group of 50 Conservative MPs are calling on the Chancellor, Rishi Sunak to extend the stamp duty cut for properties worth less than £500,000 a further 12 months in a major boost alongside The Telegraph’s ‘Stamp Out the Duty’ campaign.

The MPs, who form the Northern Research Group (NRG), are reiterating concerns from industry experts that an end to the stamp duty holiday will trigger a plunge in house prices and transactions this year. Capital Economics warned homeowners to brace for a 5pc tumble in prices.

The NRG is led by former Northern Powerhouse minister Jake Berry, who has warned Sunak that “to relinquish support now would cause long-term damage to large parts of the North and weaken our recovery”.

They are also calling for a £20 increase to weekly Universal Credit payments until lockdown ends.

Mark Hayward, Propertymark Chief Policy Advisor, said:

“The boom, caused by the stamp duty holiday has been hugely beneficial for the housing market; however, the stamp duty cliff edge on 31 March could cause thousands of sales to fall at the final hurdle and have a knock-on and drastic effect on the housing market which has recovered well from the Covid slump. We support the Northern Research Group’s call to the Chancellor to extend the stamp duty cut, and we have been calling on Government for some time to rethink the 31 March deadline, so pressure on the system can be released to allow transactions to complete and avoid a disorderly and distressing period for movers and businesses throughout the market. “

John Stevenson, Conservative MP for Carlisle, said:

“What the Chancellor did was very, very beneficial for the housing market.

“The stamp duty cut gave it confidence. Maintaining that confidence in the housing market is beneficial for the wider economy. The housing market is a big chunk of the economy… it has a huge supply chain behind it.”

Propertymark’s Property Support Package

Over the course of the pandemic, we have campaigned for a Stamp Duty/LTT/LBTT holiday across the four nations of the UK and then promoted the benefits to consumers of extending the Stamp Duty holiday.

We continue to call for an extension to the property tax holiday to avoid unintended consequences such as transactions falling through, house prices falling, and a sudden loss of momentum in the markets.

In our representation to the Budget 2021, we have called for an extension to the SDLT cut for at least another six months and the allowance that those who have an offer formally accepted prior to the end of the current cut to stamp duty or any further extension, qualify for the relief.

Join the campaign to extend the cut to Stamp Duty by writing to your local MP outlining your experiences and asking them to make representation to the Chancellor ahead of the Budget on 3 March 2020. Our collective efforts and your role with your local representatives are vital in making the campaign effective.

Kindly shared by NAEA Propertymark