Sheffield estate agent backs call to extend stamp duty holiday amid fears for housing market

Prospective buyers will have to find as much as £15,000 more to buy a home if their mortgage applications are not approved before March 31, the current deadline for the stamp duty holiday.

Nicola Spencer is the owner and managing director of Spencer Estate Agents, based on Ecclesall Road, and says there has already been a drop in the number of houses being sold this year – with the tightening of lockdown restrictions a key factor.

She now fears a further decline in the market, more so than what is normally expected after the Christmas period, as many face the reality they may not meet the March deadline.

She said: "With the whole pandemic the market went completely dead overnight to the point in which we didn’t take any properties on for at least over two months at the start.

"Everybody panicked for a short time but there has been so many people who have suddenly had to work from home, or been furloughed or suddenly been at home with their families or partners which has changed people’s attitudes on how they want to live at home, whether they need an office space, whether they need to upsize, extend or whatever.

"It did change a lot of people’s perception over their home environment. When we did starting doing valuations again there were a lot of people at breaking point from having to work from home.

“All of a sudden there was this pent-up demand from people wanting to move for various reasons in June and July and throughout August time. When we did start taking houses back on the market we were finding we would get 16 or 17 offers per property, people were just so desperate.”

In July, the Government increased the nil rate band of residential stamp duty in England and Northern Ireland from £125,000 to £500,000 to boost house sales.

Ms Spencer said it did exactly that, with her team noticing an increase in demand for property at a time when there was already pressure on the housing market.

She added: "When they brought the stamp duty in to rejuvenate the market we were already finding ourselves completely swamped. It meant all of a sudden we were even more busy, it was evident quite quickly that a lot of the conveyancing lawyers were getting overwhelmed with the volume of work they were suddenly getting.

"People who said they might move in spring were all of a sudden bringing that forward to take advantage of the stamp duty holiday.”

Given the recent surge in demand, the sales process is currently slower than normal – leaving many now worried they will be hit with a tax bill they thought they had escaped and leaving them unable to pay and complete the transaction.

Ms Spencer has joined others in calling for the stamp duty holiday to be extended, with MPs set to debate the matter following a popular online petition.

She added: "From seeing the difference it made last year I absolutely think it will make a difference now and I think we need it.”

In these confusing and worrying times, local journalism is more vital than ever. Thanks to everyone who helps us ask the questions that matter by taking out a digital subscription or buying a paper. We stand together. Nancy Fielder, editor.