The mortgage and property markets are still enjoying a significant surge in demand some fourteen months after the Stamp Duty holiday was introduced by the Chancellor in July 2020. The increase in purchase activity has contributed to UK house prices rising by 8% in the year to July 2021, which equates to roughly £19,000, and is a good indication that the mortgage market is in a very healthy position.
However, given the popularity of the Stamp Duty holiday, could the end of the tax break put the brakes on the property market’s fast growth?
Though the end of the holiday will inevitably put off some buyers, I’m confident the market will maintain its momentum. From October, demand will be primarily driven by the affordability and availability of credit, although activity will also be topped up by transactions which narrowly miss the cut-off and enduring demand for initiatives including Help to Buy and First Homes. Buyers can be reassured that the market is not showing any signs that normally indicate a crash.
Though a market collapse is far from likely, it is important to usher in efficiency gains whenever possible. Our open baking, automatic DIP and digital ID verification features are just some of the tools that help improve the efficiency of day-to-day operations. Having access to powerful sourcing tools will also be more important than ever before as buyers look to make savings in other areas following the end of the tax break.