The closing months of 2020 saw numerous changes in the property market. As we begin a new year, we also enter a new national lockdown. However, this time the property market remains open and many are looking ahead to the planned stamp duty deadline. Purchases currently underway risk not being able to complete if they miss the 31 March deadline. This is a concern for many, but the good news is that the market remains open. It is still possible to move home under this lockdown and the market remains busy. The return of high loan-to-value mortgage deals to the property market is both welcome and exciting news. But with so much going on, what does the new year really mean for the market?
National Lockdown:
The government has confirmed that the property market will remain open during the new national lockdown. While this has been well received by many, concerns for everyone’s safety understandably come first. Strict safety guidelines and social distancing measures must be adhered to, with the correct PPE worn at all times. These measures allow viewings and meetings to go ahead, meaning moving home is still possible during the lockdown. This is great for the thousands of transactions currently underway, as well as the many homebuyers looking to start the process. For the latest guidance and advice, follow updates from the Ministry of Housing, Communities and Local Government.
Stamp Duty Holiday:
The end of 2020 saw heightened calls to extend the stamp duty holiday beyond the planned deadline of 31 March. There are currently thousands of purchases currently underway, with many relying on the savings afforded by the tax break. Recent reports have shown that almost a third of buyers will pull out if they do not meet the deadline. This could have a devastating effect on the market. Industry professionals and homebuyers alike are urging the government to reconsider an extension or tapering of the deadline. Although there has been no further statement from the government since the treasury responded to the official petition, eyes are firmly on the government to act.
High LTV’s:
High loan-to-value mortgage deals returned to the market at the end of 2020. Lenders including Barclays and NatWest, to name just a few, launched new products in the property market. With more options out there, potential homebuyers with a smaller deposit are being encouraged back to the market. It is fantastic news that more people will be able to move home as a result of the new mortgage products out there. With demand for housing still high following the first national lockdown, high loan-to-value mortgage products are key to helping more people move. This is an incredibly positive way to start the new year. At Conveyancing Lawyers For You, we look forward to more products coming to the market as we progress through 2021.
What could this all mean for the property market?
The property market is set to remain open during the new national lockdown. Although changes must be made to keep everyone safe, we know already know the industry is adaptable. The focus for many buyers is the approaching stamp duty holiday deadline. Further confirmation is needed from the government to fully bring the matter to a close. Although the market is showing positive signs, like lenders feeling confident to offer high loan-to-value mortgage products, an extension or tapering of the planned deadline will ensure the market remains stable. We are in the midst of an unprecedented time where anything is possible. Although times are troubling right now, we are looking ahead to a positive 2021 for the market and beyond!
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