Not extending the current Stamp Duty holiday could have a negative effect on the economy, says leading national estate agent; Carter Jonas.
With an online debate set for Monday the 1st of February to discuss extending the current Stamp Duty holiday for homes under £500,000 has garnered extra support this week, with one of the UK’s leading estate agencies; Carter Jonas joining the campaign to extend.
The multiplier effect of the property industry on the overall economy, say Carter Jonas, along with the current backlog on conveyancers, is reason enough for the extension to go ahead.
“Following months of the global COVID-19 pandemic and its associated restrictions and lockdown measures, the UK economy has yet to return to pre-pandemic output levels,” says Lisa Simon, Head of Residential at Carter Jonas in their January Market Report.
“The housing market, however, is not just past pre-pandemic figures, in many cases it is reaching 5-10-year record rates.
The Multiplier Effect On The UK Economy
The report continues; “A strong and growing housing market contributes to the wider economy and reflects consumer confidence, and this then leads to greater spending patterns and ultimately job creation.
“On a micro-economic level, buying and selling homes contributes to growth, as it stimulates additional expenditure in the local economy.”
At present, there’s a backlog of paperwork, particularly with conveyancing solicitors, thanks to the current rate of sales, mortgage approvals and transaction levels, which are running at a 10 year high.
An extension to the Stamp Duty holiday would ease pressure throughout the market. As well as letting buyers and sellers benefit from the very attractive savings on Stamp Duty.
Selling Your Home During Lockdown
The market is extremely strong at present, despite lockdown restrictions. If you’re thinking of selling, we have put together a complete guide to selling your home during lockdown.