Stamp duty holiday and pent up demand, but what now for 2021?

04 December 2020

Richard Pike, Phoebus Software sales and marketing director, says “It is always interesting to look back, and of course what we see for Q3 in the mortgage market was a huge rise in activity that really couldn’t have been predicted. The stimulus of the stamp duty payment holiday that the government hoped would give the market a boost after lockdown, did exactly that. There was also so much pent up demand when we came out of the first lockdown, which shocked estate agents, advisers and lenders alike.

“With the industry currently lobbying the government regarding the cut-off date for the stamp duty holiday, we hope to see some decision shortly which will prevent applications in the pipeline from falling off the cliff on March 31st.”

“As we head into 2021 and unemployment figures inevitably rise, the question of mortgage repayments will become an issue. Lenders will need to be prepared and forbearance will no doubt be top of the government’s list of requirements. To that end lenders should now be training and recruiting as their collections departments will no doubt be under some pressure.”