As questions remain on the stamp duty, many home buyers are choosing to wait before getting a fixed rate mortgage. There is a lot of uncertainty at this time and few know when the changes will occur. Many are preferring to err on the side of caution and wait for the final declaration before committing to a new fixed rate mortgage deal. This may benefit consumers over the long term anyway.
‘Who will want to commit to a property purchase now when it is probable that by waiting a few months stamp duty costs, possibly running into tens of thousands of pounds, can be avoided?’ said Ray Boulger, senior technical manager at John Charcol.
‘The government’s policy of leaking policy initiatives like this is not clever. They have been considering action on stamp duty for some time and should now announce a definite policy in the very near future. With the chancellor’s confirmation that he is considering a temporary suspension of stamp duty, the already very low number of transactions in the housing market, approximately 60% down on last year, will diminish further until he sets out his proposals.”
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