Soaring Covid rates across the UK mean tougher measures have been put in place, including strict instructions to stay at home and work remotely where possible.
Although moving house can still go ahead under the tighter restrictions announced by Prime Minster, Boris Johnson, yesterday evening, there are concerns about how the remote working rules will impact the businesses already feeling the pressure from the huge number of housing transactions taking place.
And some are questioning whether the lockdown will provide the impetus for the government to respond to calls for an extension to the stamp duty holiday, which is due to end on 31 March.
George Franks, co-founder of London-based estate agents, Radstock Property, explained: “In theory, it’s business as usual for the property market but in practice that’s simply not the case.
“Transactions are already under a lot of time pressure and the new lockdown will compound the issue, as people work from home or fall ill with the new strain.
“Extending the deadline by at least another month to reflect the new national lockdown seems like the right thing to do in the current circumstances and I’m sure it’s on Rishi Sunak’s agenda.”
Indeed he said the property market was providing a ‘vital fuel’ for the economy and he thought the Treasury would want to ensure it continued doing so.
“Extending the Stamp Duty holiday is a way for the government to give people something to cheer about when there’s so little to cheer about, as public sentiment and the property market are closely related,” he added.
Logistical issues
Andrew Montlake, managing director mortgage broker Coreco, was also concerned there would be more ‘logistical issues’ for the industry as greater numbers of people would now be working from home.
“Lenders, valuers and conveyancers are already experiencing bottlenecks and delays given the sheer amount of applications going through and the administrative upheaval caused by the latest lockdown will only serve to accentuate them,” he said.
He predicted the government would give the go-ahead to an extension imminently. “We would not be surprised if the Treasury makes an announcement this week about extending the Stamp Duty deadline to keep demand alive and give the property industry some much needed wiggle room,” he added.
