BoE: stamp duty 2.0 in its eleventh hour

Following this morning’s Bank of England money and credit figures, Richard Pike, Phoebus Software sales and marketing director, says: “With mortgage borrowing bouncing back in May, it is undeniable that the stamp duty extension has added fuel to the fire as people rush to beat tomorrow’s deadline.

“Almost 60% of adults in the UK are now fully vaccinated, and more than 80% have had at least one dose. With the world opening back up and the thrill of stamp duty 2.0 in its eleventh hour, we will soon see how much amplification this has given the market and the impact greater freedom has on buyer habits.

“Without the financial incentive of the stamp duty holiday, it will be interesting to see if the housing market cools down in Q4. We are also seeing lending criteria being loosened and high LTV lending becoming more readily available. If there is a housing market correction of any sort, then there are several factors that could cause concern in terms of longer term arrears performance.”

Published: 29 June 2021