The conveyancing distributor warned that the 3% stamp duty hike for buy-to-let landlords from April 2016 will result ‘mayhem’ as new landlords scramble to get deals done by the 31 March deadline.
The deadline will coincide with the Easter break, typically a busy time for the housing market as many purchasers seek to complete and move in during the Easter holidays.
Harpal Singh, managing director of Broker Conveyancing, said: “While I can partly understand why the Chancellor might wish to put the brakes on buy-to-let investment, the method of increasing stamp duty land tax for these purchasers will have a huge impact on the housing market as a whole and could result in a less than smooth process and, quite frankly, mayhem.
“The four-month notice period is incredibly short and it is likely to mean a very busy time for all stakeholders, particularly the conveyancing profession who are going to be pushed by all concerned to try and complete purchases before the 31 March next year.”
He added: “Another conveyancing issue will be the ‘no completion, no fee’ deals currently on offer – if these buy-to-let and second home purchases do not complete then there is a greater likelihood of them falling through.
“It seems almost certain that buy-to-let conveyancing fees will rise in order to cope with this, the extra workload, and I wouldn’t be surprised to see some firms pulling back on their ‘no completion, no fee’ offers.
“Finally, we have to consider the impact on the market after this deadline is passed – we are likely to see a considerable slowdown and conveyancing firms, along with many other stakeholders, could move from feast to famine. Resource and business issues will need to be managed carefully in such an environment.”
