View more on these topics

B2L stamp duty increase to cause ‘mayhem’ for conveyancers

Harpal-Singh-700.jpg

The Chancellor’s decision to increase stamp duty for buy-to-let and second home purchases could cause “mayhem” for conveyancers.

Last week, George Osborne revealed stamp duty rates for landlords would be 3 percentage points higher than residential purchasers from April. The details are set to be consulted on by the Government.

Broker Conveyancing warns that the conveyancing sector may have difficulty coping with the expected increase in activity as buyers look to complete before the new rates apply.

Broker Conveyancing managing director Harpal Singh says: “While I can partly understand why the Chancellor might wish to put the brakes on buy-to-let investment, the method of increasing stamp duty land tax for these purchasers will have a huge impact on the housing market as a whole and could result in a less than smooth process and, quite frankly, mayhem.

“The four-month notice period is incredibly short and it is likely to mean a very busy time for all stakeholders, particularly the conveyancing profession who are going to be pushed by all concerned to try and complete purchases before the 31 March next year.

“This will mean serious resource issues for these firms, especially when we factor in the double whammy brought about by the timing of the Easter break next year and the fact we’re not just talking about individual investment property completions but also the entire chains that they will sit within.

Singh believes conveyancers may charge premiums to discourage an over-exposure of buy-to-let business.

He says: “It seems almost certain that buy-to-let conveyancing fees will rise in order to cope with this, the extra workload, and I wouldn’t be surprised to see some firms pulling back on their ‘no completion, no fee’ offers. It will be apparent to all advisers that ensuring their buy-to-let clients deal with specialist conveyancing firms is an absolute necessity in order to have that chance of securing a pre-1 April completion.

“Finally, we have to consider the impact on the market after this deadline is passed – we are likely to see a considerable slowdown and conveyancing firms, along with many other stakeholders, could move from feast to famine. Resource and business issues will need to be managed carefully in such an environment.”

Recommended

House-Home-Property-Ladder-Mortgage-700x450.jpg

Building societies lose market share as banks stage fight back

Building societies are continuing to lose market share to big banks, new figures reveal. Throughout 2014 building societies slowly increased their market share, peaking at 29 per cent in the first quarter of 2015, figures from the Building Societies Association show. However, in the second and third quarters of 2015 building societies lost ground to […]

LLoyds

Lloyds to axe 1,000 jobs in latest wave of cuts

Lloyds Banking Group will today reveal plans to cut another 1,000 jobs in the next phase of the taxpayer-owned bank’s restructuring. The roles will be cut across the group’s business, including at branches, Sky News reports. A year ago the lender unveiled a three-year plan that included a target to reduce headcount by 9,000 by […]

FCA logo new 3 620x430

FCA eyes FOS payout cap hike

The FCA is considering raising the FOS compensation cap from the current level of £150,000. In a discussion paper published today on how it deals with small businesses, the regulator outlines options to expand its eligibility criteria. It says irrespective of expanding its scope, the maximum pay out may need to be raised from £150,000. […]

Six freezes at 4 percent but Charcol say the future & 39s already fixed up

The Bank of England’ Monetary Policy Committee yesterday held interest rates at 4% – for the sixth time in a row. The most recent change in interest rates was a reduction of 0.50% to 4.0% on November 8 2001 – seven months ago! The Confederation of British Industry welcomed the decision. Ray Boulger, senior technical […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Ian Briscoe 30th November 2015 at 11:45 am

    As well as buy-to-let it, will it impact second home situations, such as parents buying with children, bridging and development?

Close

Why register with Mortgage Strategy?

Mortgage Strategy continues to be the market-leading B2B mortgage publication in the UK, and provides trusted, independent insight with the aim of helping, promoting and analysing the latest developments for mortgage professionals.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Mortgage Strategy Events
Be the first to hear about our industry leading conferences, awards, webinars and more.

Research and insight
Take part in and see the results of Mortgage Strategy's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now