With the Stamp Duty Holiday ending on the 31st March it is getting late in the day if you are wanting to benefit from this one off bonus.
This was offered by HM Treasury as one of a number of measures to boost the economy as we came out of lockdown. The result for sellers was a very positive one, as the vast increase in seasonal sales implied. The reality is that it probably evened out sales for the year after lockdown but this in itself is a significant achievement given the barren months of the early summer. As stats take some months to come through the jury will most definitely be out on this one. One massive positive for sellers is that with demand way outstripping supply prices hardened, and in many places increased in spite of the national economic gloom. It is interesting to see the many people are campaigning for the Stamp Duty Holiday to be extended but Mr Sunak may feel he has given enough away already!
Without doubt, because of lockdown and with more people working from home the conveyancers have struggled to keep up with the demand for their services and average completion times moved to months rather than weeks. They had to squeeze 6 months worth of sales into a much shorter timespan and it is no surprise that they could not cope.
This was a positive result for auction sites as they reported a significant increase in numbers and the proportion of sold properties was much higher than previously experienced. Very often they sell between 60% & 75% of properties in their catalogue, depending on the time of year, but many were reporting well in excess of 80% sold towards the end of 2020. The online experience was greeted positively by buyers and sellers alike. The success has been so great that auction sites are now advertising on TV and pushing hard on social media sites, this dropped into my inbox on LinkedIn today, Opal Auctions. We reported on auctions late last year with this article, How do I sell my house quickly?
There are two issues here, firstly the current house buying system is broken, there are no guarantees for a seller once a price is agreed and they have to wait until exchange of contracts before they can breathe a sigh of relief. The seller can change his mind at any point and for no reason which is unacceptable, there needs to be a penalty involved; a pre-contract agreement is needed whereby the seller pays a 1% deposit which is non-refundable but is part of the deposit on the whole transaction. Secondly the timespan involved is far too long and this is why auctions are so successful, when the hammer goes down contracts are exchanged, and deposits are paid. They offer certainty which sometimes is the more important than price for a seller.
We like to think that we offer certainty in our process, give us a call, we come and see the property and within a few hours you have a great offer for a fast sale. So if you need a fast sale then give us a call and we will be straight on the case.