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Taper end of stamp duty relief or kick problems down the road – Twenty7Tec

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  • 02/03/2021
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Taper end of stamp duty relief or kick problems down the road – Twenty7Tec
Brokers have backed extending the stamp duty holiday as Twenty7Tec revealed mortgage searches up 44 per cent since the relief began.

 

The technology vendor found 74 per cent of brokers agreed, “it is right for Rishi Sunak to extend the stamp duty holiday.”

Its data showed growth in searches for residential mortgages of 48 per cent, and 27 per cent for buy-to-let (BTL), during the 33 weeks from the tax holiday announcement on July 8, 2020, to February 24, 2021.

As well, mortgage documents prepared have risen 23 per cent during the tax relief period.

The technology provider called on the Chancellor to introduce tapering in tomorrow’s Budget and said otherwise, “all he is doing is moving the cliff edge further down the road, continuing this elevated level of activity before yet another deadline.”

 

Regional search volumes

In London, mortgage searches rose by 17 per cent during the tax relief period. Residential mortgage searches increased by 34 per cent, while BTL product searches trailed at four per cent growth.

The proportion of BTL searches in the capital dipped below the pre-stamp duty holiday level of 30 per cent.

“With fewer first-time buyer products at or above 90 per cent loan-to-value, it’s a real problem for the London scene if BTL forms a smaller percentage,” said Twenty7Tec

In Manchester, mortgage searches rose by 16 per cent during the tax holiday period. Searches for residential mortgages were up five per cent and by a whopping 53 per cent for BTL.

In Liverpool, searches rose by 17 per cent, including residential up 21 per cent and BTL at six per cent.

For Birmingham, total searches were up 25 per cent. In Wales, searches rose by 49 per cent. In Scotland, the relief did not apply to purchases of second homes or for transactions worth more than £250,000, however searches rose by 28 per cent.

 

Purchase versus remortgage

Nationwide, purchase documents’ share of searches rose to 62 per cent, up from 49 per cent, while remortgage documents’ slice fell to 38 per cent, down from 52 per cent. This partly reflected the number of people taking mortgage payment holidays.

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