A letter was sent to the Government with the backing of several industry bodies citing the reasons why the extension would benefit the industry, the economy and most importantly, people in the process of purchasing a property.
Iain McKenzie, CEO of The Guild of Property Professionals, says: “In a bid to up the ante, The Guild has provided its Members with another letter that they can address to their local MPs in a bid to drum up further support of the initiative of extending the tax break.
“We are hoping to use our influence as a large network to help persuade the Government to push back the deadline date because of the high number of transactions currently in the pipeline that won’t make the cut off due to delays. Consumers should not be penalised for the delays currently experienced in the property buying process that they have no control over.”
He continues that while the letter has been sent to Guild Member agents, it is also available to all agents if they wish.
McKenzie explains: “We are encouraging all agents to either use the letter we have drafted or to draft their own letter to their local MP in support of the extension of the holiday. If the sector works together in support of a common goal, there is far more chance that the Government will act, and act quickly, which is what is needed."
He suggests that the property sector and related services are not equipped to be able to process the vast volumes of transactions before the cut off and many consumers run the risk of missing out on the tax break.
He adds: “If the deadline remains as it is, only a quarter of the sales agreed in January will complete in time. According to Zoopla, there are approximately 140,000 more people waiting to complete sales than this time last year, so there will be a significant number of buyers who will have to find additional money for Stamp Duty if they have not budgeted for it.
"If buyers are unable to complete as a result of not having the Stamp Duty money in place, we will see a large number of transactions fall through as a result.”
Our hope is that the Government extends that Stamp Duty holiday for another six months, or at the very least introduces a phasing out period that will ease the pressure on all parties involved, and will prevent a cliff edge.
McKenzie concludes: “If the sector is successful in lobbying the Government, the result would have a positive impact for the industry and consumers, as well as the greater economy.”
The letter to local MPs is available here.
