Recent figures estimate that almost a quarter of a million property transactions have been processed, with solicitors working around the clock to process thousands more before the deadline next month. However, with such a gold rush, has the panic to get deals over the line left properties in a legal quagmire?
With the necessity of documentation for work on properties helping to speed up the process of transactions, Powered Now - a mobile billing service for the trades - has found that Brits seeking to refurbish their homes are in fact totally unaware of such legal requirements, with 8.4 Brits wishing to 'fix-up' their homes, but were unaware of such requirements.
When put under the microscope of transactions occurring during the stamp duty holiday, it has transpired that 1.2 million Brits were or are in the process of selling their homes, but did not have all the legal paperwork to hand to ensure that they could prove all work done to their property was legally approved.
Key Statistics:
- 30% (8,467,000) of Brits agree that they would like to renovate a property, but do not know about all the relevant rules and regulations.
- 8% (1,229,000) of Brits agree that the looming end of the Stamp Duty holiday has caused them to rush to sell a property, but they do/did not have all the paperwork they need to prove all work on their property has been done correctly.
- 7% (1,783,000) of Brits agree that they are living in a dilapidated/ run-down house because they have rushed through a property purchase, but don't have the budget to do it up.
As one of Britain's favourite pastimes, home improvement projects aren't quite as simple as hiring the local handyman to complete individual jobs. With the stamp duty holiday shining a light on the necessity of having certification of all major projects to enable a smooth transaction, Powered Now is calling for the extension of the stamp duty holiday in order to allow Brits to have their documentation organised.
Ben Dyer, CEO of Powered Now, comments: "There's more than just the economic relief that comes with extending the Chancellor's stamp duty holiday. This gold rush we have seen thanks to the stamp duty holiday means that there will be thousands of transactions eagerly waiting to cross the line before the 31st March deadline. Indeed, recent research from the Guild of Property Professionals has shown that almost a third of buyers would pull out of their transaction if they missed the deadline.
"However, what about those who also need to have their documentation in place?
"We know that Brits love to 'fix-up' their properties. Home improvement projects experienced a real boom after the first lockdown of 2020, but as a nation, we are widely unaware of the requirement to document these projects, and likewise, the consequences of not recording such improvements.
"As our research has shown, we are still widely unaware of the proper certification we need to provide to solicitors and conveyancers when processing transactions. Without such documentation, sales can be held up for weeks, if not months. We, therefore, call for the extension of the stamp duty holiday in order to organise such documentation."
