"It currently takes 134 days to complete on a property in the UK and it’s been reported that one in five buyers are facing more than a six-month wait for completion."
Speaking to the Daily Telegraph, sources said that Rishi Sunak is reportedly mulling a limited extension through to mid-May, stating that "a lot of people would be caught in the completion trap if the holiday were to end when it is due to".
Two weeks ago, MPs showed cross-party support for a taper or extension to the stamp duty holiday during a virtual House of Commons debate.
Miles Robinson, head of mortgages at Trussle, commented: “The news that the Chancellor of the Exchequer, Rishi Sunak, is considering a six-week extension to the stamp duty holiday offers a glimmer of hope to buyers racing to beat the current deadline of 31st March.
"The stamp duty holiday has caused unprecedented demand within the market. At Trussle, we saw a 63% increase in mortgage applications in December and a 15% increase in January, when comparing the same periods year-on year. However, the surge in demand has triggered long delays in the processing of transactions. It currently takes 134 days to complete on a property in the UK and it’s been reported that one in five buyers are facing more than a six-month wait for completion. Therefore, a potential six-week extension could prove invaluable to the estimated 100,000 property purchases currently underway.
"However, there will be many who are yet to begin their home ownership journey but still hoping to benefit from the tax relief. For these people, the proposed extension won’t be long enough. Whilst their mortgages might be approved before the deadline, the current wait time for other necessary processes, such as surveys, valuations and local searches are likely to take longer. In fact, local searches are now experiencing wait times up to 200 times longer in some areas than normal. We’d encourage all buyers hoping to complete before the end of March to use a Stamp Duty calculator to factor in potential stamp duty fees to avoid any unexpected costs should their sale not complete in time.
"As the wider economy continues to recover from the coronavirus pandemic, we’d urge the Government to consider granting a longer extension or adopting a tapered approach to ending the stamp duty holiday.”
