Fears are that the Newark property market will now suffer a dip as a result of the first tier Stamp Duty Holiday ending today. Newark’s housing market has seen a surge in demand and prices boosted by the stamp duty holiday. While the tax break was initially set to expire on March 30, it was extended by the Chancellor in order to prevent the market falling off a cliff edge. The threshold will now drop to £250,000 until the 30th of September so many sales will be unaffected. Those most at risk will be the ones at the top of any property chain where prices are most likely to exceed £250,000.
However, now that new deadline has arrived, the fear is that some buyers, who have already borrowed up to their maximum limit and then miss the deadline, will not have the extra funds to pay the tax bill, which could force them to pull out.
Solicitor Lynn Murray, owner of law firm Lynn Murray & Co, has 42 transactions to complete by midnight on Wednesday and says the past few weeks have been her busiest time in 20 years of operating. She warns that not every buyer will complete in time due to inefficiencies in the process.
Ms Murray said those in multiple chains may see people at the top of a chain paying the full stamp duty levy, while those at the bottom of the chain get away without paying. One shocking fact is that some buyers have been so desperate to complete in time, they have cut corners, such as omitting to carry out essential surveys for flood threats or subsidence.
One of the biggest challenges is people not being physically able to move house because of a shortage of removal companies so the issues are not just with banks and law firms. It looks like the Newark property market is going to be thrown into a state of uncertainty for the coming months, so if you are looking for a fair price for a fast sale then contact us and we can get the ball rolling straight away.