Conveyancing services and property businesses could struggle to keep up with the demand for property completions as people scramble to buy before the chancellor’s new stamp duty laws come into effect.
The boss at Outlet, Josh Rafter, believes the relatively short lead up to the new taxes being implemented could create mayhem. He told us: “I see why the George Osborne decided to introduce a higher stamp duty tax – to curb the investment in buy-to-let and generate more income for affordable housing. However once you take the busy Christmas period out of the equation he has essentially allowed people three months to get their ‘ducks in a row’. It’s not long at all to find somewhere and ensure you can exchange and complete before 31 March – but I suppose that’s the point for the government. It could be problematic for conveyancers. One piece of advice is to work with a reputable agent you trust, that will stay on top of the paperwork and everything that’s required. There are likely to be unrealistic amounts of work to do by conveyancers in a short space of time.”
Although there have been claims the three per cent hike in stamp duty could benefit the market, it may also cause a ‘feast or famine’ scenario for people who rely on the industry for an income. Josh added: “what many people are predicting is a rush of purchases in the first quarter of 2016, followed by a lull in sales as people think twice about investing in property due to the much higher taxes.”
If you’d like to discuss mortgages or other financial products such as insurance, give Outlet’s Money team a call today on 020 7287 4244. Or you can visit outlet4property.com