Friday, August 12, 2022
Real EstateUK

Housebuilder stocks surge on reports of stamp duty extension

Barratt Developments

Housebuilders Barratt Developments and Taylor Wimpey were among the top 20 risers on the FTSE

UK housebuilder stocks surged on Wednesday on reports that chancellor Rishi Sunak may extend the stamp duty holiday until the end of June in order to give the property market a boost.

At present, the holiday is scheduled to end on 31 March but The Times reported that Sunak will use his budget on March 3 “to move the stamp to the end of June, bringing it into line with the easing of lockdown restrictions.”

The chancellor has faced pressure to extend the deadline amid concerns that it would create a ‘cliff-edge’, jeopardising hundreds of thousands of sales, the publication noted.

Housebuilders Barratt Developments, up about 2%, and Taylor Wimpey, up nearly 1.5%, were among the FTSE 100’s top 20 risers.

Property developer British Land, which advanced 1.8%, was also on the list of risers, as was Land Securities, which added 2%.

Persimmon was rose nearly 1.4% and Redrow advanced 3%.

Estate agents also saw a boost. Foxtons added nearly 4% and LSL Property Services was also up about the same.

Since the introduction of the stamp duty holiday last year in order to support the property market during the coronavirus pandemic, the housing market skyrocketed with mortgage approvals, transactions and house prices all rising in 2020.

Last month it was reported that two-thirds (67%) of UK homebuyers would like to see the current stamp duty holiday extended.

Nearly half (48%) of movers said they were concerned that their sale will not complete by the deadline which is currently 31 March, meaning they will still have to pay stamp duty.

Although stamp duty holiday was cited as the reason for the heightened activity in the UK property market, just 25% of homebuyers stated that it was the driving motivation behind their decision to buy, according to the survey of over 1,000 UK homebuyers.

According to a separate survey, thousands of UK homebuyers could pull out from their deals if the stamp duty holiday is not extended.

Nearly three quarters (74%) of homebuyers are likely to cancel their planned move if they have to pay stamp duty, according to a survey of over 1,000 people by The Guild of Property Professionals.


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