22% of Sandersons UK sales pipeline was under threat from the additional 2% stamp duty
This was announced in the Autumn Budget impacting people purchasing additional properties.... with immediate effect!
The autumn budget has caused a bit of a stir amongst many industries. In a blog we published shortly after Rachel Reeves announcement, we delved into the details of the changes which would impact the property market and anyone moving home.
A few weeks have passed since then, allowing us some time to reflect on the wider impact and review the implications for transactions within our own pipeline.
In this video, Pippa reminds us of the changes to stamp duty land tax (SDLT) for people buying an additional property. Unlike the predicted change to Capital Gains Tax or extra SDLT for overseas investors, which then went unannounced, no one anticipated a change to this element of stamp duty. Not to mention, the fact it was being introduced with less than 5 hours left in the working day for conveyancers to rush any transactions through before the deadline or for the whole industry to react.
There were a number of questions unanswered as no detailed guidance was formally released at the same time and Land Registry were uncontactable. At Sandersons UK, 22% of our pending sales transactions were under threat of falling through as a result, as buyers were left with the ultimatum to find the additional money - an extra 2% of the purchase price. In some cases this was quite a significant sum of money and people who didn’t even think they would be impacted were in a predicament.
As highlighted in the video, we don’t disagree with the principle of charging more to people purchasing additional properties, but it needs to be executed in a far more considered way than this new labour government demonstrated. In true Sandersons style, we wanted to make sure our voices were heard and the Government could have an opportunity to delay the implementation after understanding the real impact on peoples home lives. This included several members of staff writing to their local MP’s and our Managing Director was contacted by The Times. Although somewhat misrepresented on her position (typical British Press eh?), the story did still make it to print to raise awareness.
Ultimately, despite these efforts towards the government, there is still a lack of recognition of the impact the extra 2% change with immediate effect would have. Fortunately for the 22% of our entire pipeline who were buying, selling or even in a chain with a property Sandersons were progressing could continue with their moving plans. This wasn’t without some unexpected delays, working around the clock, skilled negotiations and expert progression practices. Overall, huge well done to our dedicated in-house sales progression team for doing what you do best, which is ensuring those transactions which impact so many peoples lives (not just investors & 2nd homeowners!) can go ahead.
