P2P platforms call for stamp duty holiday extension

Peer-to-peer lending platforms have called for an extension to the stamp duty holiday past its 31 March 2021 deadline.

In July, Chancellor Rishi Sunak cut stamp duty on the purchases of homes up to £500,000 in England and Wales for residential and buy-to-let.

According to the latest HMRC data, the total number of stamp duty transactions in the third quarter was up 68 per cent from the second. This was attributed to the easing of lockdown measures in June and the introduction of the stamp duty cut in July.

Despite this, stamp duty transactions were down 18 per cent year-on-year in the third quarter.

P2P platforms have called for an extension to continue driving activity in the market and ensure demand does not drop past the deadline of 31 March.

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“I think there should be an extension,” said Atuksha Poonwassie, co-founder and managing director of property lender Simple Crowdfunding,

“Otherwise there will be a substantial impact early next year.

“We’re getting to a point where unless you’ve identified a property and are in that process of purchasing it, the chances are stamp duty completions won’t happen until the end of March because things are taking longer due to the lockdown, lawyers being busy and searches are taking longer.

“The market is expecting a dip once the stamp duty benefits end. The market is down year-on-year and that will worsen next year if the stamp duty holiday is not extended.”

Read more: Half of investors still confident in bricks and mortar

Filip Karadaghi, chief executive of buy-to-let and bridging lender LandlordInvest, said that stamp duty has affected demand which is evidenced through house price increases and property lenders seeing a rise in enquiries, and thus should be extended.

“For us working in the property industry we’d welcome an extension,” he said.

“It installs confidence in the property market, and we’ve seen it drive an increase in activity and prices.

“Given the uncertainty with what’s happened with the economy and towards the end of next year I think anything that promotes economic activity is good and any recessionary moves are welcome.

“Stamp duty has been driving activity significantly and may be extended but you never know how the government will spend its budget.”

Read more: P2P property lenders boosted by pick-up in landlord demand since stamp duty cut

Yann Murciano, chief executive of property development lender Blend Network, also expects the government will extend the stamp duty holiday.

“I think the market has kept very strong indeed, especially at the bottom-end of the price range where the impact of stamp duty has been felt more,” he said.

“I am confident they will extend it.”