Firms must be ‘stamp duty ready’ ahead of threshold change, Target warns

29 January 2025

Firms must be ‘stamp duty ready’ to avoid potential bottlenecks and maintain service levels, Target warns as the UK mortgage and property markets brace for the upcoming change to stamp duty thresholds.

Target, a leading provider of digital transformation, software and business process outsourcing, believes that without the necessary preparation, firms run the risk of current processes being overwhelmed and both delays and disappointment for clients and customers. As first-time buyers and home movers rush to complete transactions before the end of March, a potential spike in activity is likely to put further pressure on firms.

Historically, so-called ‘cliff-edge’ deadlines and stamp duty ‘holidays’ have generated a surge in demand, increasing the workloads of brokers, lenders and conveyancers, and creating operational backlogs in other parts of the chain – such as HM Land Registry. Target is calling on the market to learn from these previous disruptions and ensure they are ready to meet demand.

The warning comes as both AMI and IMLA encourages its members to manage borrower expectations and prepare for a worst-case scenario should they miss the stamp duty cut-off. Missing the deadline means higher costs for borrowers and presents a reputational threat for all parties, potentially damaging the relationship between lender and broker, and between a broker and their clients. To help mitigate this, Target argues that firms should be investing in technology to improve processes, increase capacity and deliver new efficiencies.

Melanie Spencer, sales and growth lead at Target, said:

“Given how bloated transaction times have become, there’s every chance that those in the process or getting ready to move will have likely missed the boat. While a good broker will already be having this conversation with clients to manage expectations and make the necessary adjustments to budgets, it won’t stop buyers from trying. Firms absolutely need to prepare for a spike in activity and be ‘stamp duty ready’ before the new thresholds take effect.

“For those that remember the previous stamp duty holiday, the scars will still be very fresh. Arguably, many sectors are still recovering as workloads became unrealistic, client expectations were high, and people left the industry. To avoid something like this again, firms at every level need to be looking at their processes and their current systems to ensure they can keep pace if things escalate again.

“There’s no doubt technology will play a critical role, helping to drive efficiencies in mortgage application, lender decision-making and throughout the entire process to help facilitate transactions and minimise the burden on firms and their staff. Outsourcing key processes will be an asset too as firms look to avoid operational strain, maintain service and avoid reputational damage.”

Target is well known in financial services for its broad lender proposition, including its state-of-the-art originations platform, Mortgage Hub. The award-winning platform uses behavioural science and ongoing consultation with all the key parties to help mitigate the key frustrations faced during the mortgage process and deliver an improved experience for all.

In one example, Mortgage Hub helps reduce the time between application and offer, providing a decision in principle (DIP) in just 20 seconds.

Alongside mortgage and loan servicing, collections management and resource augmentation, Target supports leading brands in multiple sectors through business process outsourcing (BPO), managed services, remediations and device finance, among others.

For further information about Target Group, please visit www.targetgroup.com.