A call to action has been issued by the Law Society for England and Wales, amid growing concerns that a cliff-edge end to the Stamp Duty holiday combined with a bottleneck in the housing market could see thousands of transactions collapsing at the eleventh hour, leaving consumers stranded and out of pocket.
The Law Society’s campaign to ‘help buyers climb the ladder – cancel the cliff edge’ urges individuals to write to their MP and request that the Government takes swift action to protect home buyers and support the orderly working of the property market ahead of the budget on 3 March and the 31 March planned cut-off date for the SDLT holiday.
The Law Society has submitted an extensive package of recommendations to the HM Treasury, to include extending the holiday, implementing tapered transition provisions for the end of the scheme, or introducing a grandfathering scheme for transactions that haven’t completed by the cut-off date.
“While the SDLT holiday was a welcome step to help revitalise the property market after the impact of lockdown, it has become increasingly clear that the abrupt end of the holiday on 31 March combined with a bottleneck in the market could cause significant disruption,” said the president of the Law Society David Greene.
“Thousands of transactions and chains could collapse at the last minute, leaving consumers who had hoped to take advantage of the concession to move into their dream home instead stranded and saddled with unrecoverable costs for transactions that fell through.
“Urgent action needs to be taken to soften this cliff edge and protect home buyers and sellers from being out of the scheme, out of luck and out of pocket.
“That’s why we are encouraging people to write to their MP urging them to raise these concerns in Parliament and with the Chancellor of the Exchequer and to ask the government to take swift action before 31 March.”
According to Rightmove’s most recent House Price Index Report, it’s thought over 100,000 dream home moves could be in jeopardy with home buyers facing an unexpected tax bill when they miss the 31st March 2021 deadline.
Those that wish to support the Law Society’s campaign and write to their MP can use their free quick, and easy tool, which takes just two minutes to complete by clicking here.