The recent mini-budget has caused turbulence in the money markets, and the government has u-turned on many of the measures they had originally intended to put in place. One of the measures which they have not changed course on is the stamp duty limits. Under the new rules announced by the Chancellor, the stamp duty threshold was raised from £125k to £250k, with the threshold for first time buyers raised from £300k to £425k. Stamp duty is a tax paid on the price of any property bought and sold, and changing the level at which buyers start paying stamp duty is an attempt to encourage more people to buy and sell property.
Impact on Property Market
Increasing demand in the property market might mean that houses and flats are snapped up as soon as they go on the marker, so if you are thinking of moving house, acting swiftly when you spot something you are interested in is key. The other consequence of this is that increased movement in the property market can cause backlogs with solicitors and conveyancers, who have a higher volume of work to do. House sales and purchases can therefore take a lot longer at a time when increased stamp duty thresholds raise demand for conveyancing work. Industry figures show that pre-pandemic in 2019, it was taking on average 17 weeks from making an offer on a property to getting the keys and moving in, but in 2022 this has risen to almost 22 weeks. This is partly down to the increased demand, but there are also other factors such as local authority searches taking longer to come back, and shifts in the mortgage market too.
Speeding Up the Home Buying Process
If you are aware that there are delays in the system, then this can help manage expectations about how long it’s going to take to get the keys. Although it can be tempting to cut corners in an attempt to speed things up, this might cost you dear in the long run.
The conveyancing searches are designed to establish whether your intended property is at risk of flooding or subsidence because of old mining works, or whether the council intends to build a new road through your back garden. This all takes time, and dispensing with the checks could mean that you are landed with a property which you can’t sell. Also, if you are buying using a mortgage, the mortgage company will insist that conveyancing is done properly and professionally, to protect their asset.
That doesn’t mean though that your hands are tied when it comes to speeding things up. Look for a lawyer or conveyancing firm which can handle the process remotely, and which doesn’t need you to attend their office in person to sign documents. Some companies have websites where you can log in to look at how your case is progressing, and deal with any issues the conveyancer has flagged for your attention. Respond promptly to eliminate delays where possible.