The Intermediary Mortgage Lenders Association (IMLA) has joined a growing list of voices from the mortgage market calling for the government to take action on the looming stamp duty holiday.

The Association suggested the UK’s move into a third nationwide lockdown leaves the mortgage market under “extreme pressure” to process a large number of buyer applications before the stamp duty deadline on 31 March.

The cut to the Stamp Duty Land Tax (SDLT), announced last July by the Chancellor, means homebuyers across England and Northern Ireland are not required to pay stamp duty when purchasing homes up to a value of £500,000, with a reduced rate for homes above that value. For someone buying a £500,000 property, the Treasury calculates the saving is worth £15,000 for buyers.
 
“Lenders, intermediaries and conveyancers are battling to work through the volume of transactions as the stamp duty deadline approaches,” said IMLA executive director, Kate Davies.

“Borrowers must remain realistic about what could happen if they are unable to complete before the 31 March because, if they cannot, they will be liable to pay the stamp duty due.  If they can’t find the funds they need, their sale may fall through.”
 
IMLA stated that it had been clear about the need to manage consumers’ expectations, but warned that the imposition of a third national lockdown will cause disruption to buyers.

Davies added: “There have been many calls on the government to consider some form of extension or tapering of the stamp duty holiday, giving buyers the breathing space they need to complete their house purchase before the deadline. Surely the time has come for the government to respond and ease the pressure on the system.”

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