A survey of borrowers has found consumers were far less buoyant in December than they were in September, which is leading to concerns the enthusiasm for moving home prompted by the Stamp Duty holiday may not last into 2021.

The latest Property Tracker from the Building Societies Association (BSA) also revealed, while uncertainty in the jobs market was impacting potential movers, a high proportion remained confident they could pay their mortgage.

Indeed 91% of those borrowers quizzed for the survey felt confident they would be able to make their repayments in the next six months.

But, this is in stark contrast to the 27% who thought now was a good time to buy a property. This is down from 37% in September and suggests, the BSA said, the property boom caused by the stamp duty holiday could be short lived.

Scottish and Welsh borrowers showed the most disquiet when it came to moving with less than a quarter of consumers in Scotland (22%) and Wales (23%) feeling that now is a good time to buy.

Call for tapered end to stamp duty holiday

Paul Broadhead, head of mortgage and housing policy at the BSA said: “Whilst confidence in buying a property has declined, the market is still dealing with the demand created by the Stamp Duty holiday and the capacity constraints in completing the surveys, valuations and searches in a Covid-secure way before the 31 March deadline.

“To help alleviate this we have proposed a tapered end to the Stamp Duty holiday to government, where those who have accepted a mortgage offer by 31 March are given an extra three months to complete the purchase, whilst still benefiting from the tax reduction.

“Continuing with the proposed cliff edge end could potentially have a damaging impact on the property market, particularly if those whose sale doesn’t complete within the deadline walk away from the transaction.”

North/South divide

When it came to house prices, the BSA noticed a clear North/South divide. Those in the South and Midlands weere more confident prices would rise over the next 12 months, with 27% in the South and 30% in the Midlands saying they thought this would be the case.

This compared to 23% in the North and 20% in the East of England. The exception to this geographical divide was London, where only 23% expected house price rises, possibly reflecting reports that homeworking was driving more people to look for property in less urban areas.

Broadhead added: “Looking ahead, there are significant concerns around job security and whilst households currently remain confident in their own personal finances, lenders will continue to support those who face payment difficulties, including accepting requests for mortgage payment deferrals up to 31 March 2021.”

What are your thoughts on the Stamp Duty holiday deadline? Do you agree with the BSA, that it should be tapered, or would you rather see it end on 31 March 2021? Have your say in our poll on the homepage.