New Year mortgage searches spike as buyers ‘price in stamp duty’
by: Lana Clements
Sourcing system Twenty7 Tec has this week seen one of its busiest days in two years, as searches spiked after an initial lull at the start of the year.
Phil Bailey, sales director at Twenty7Tec, said: “Lockdown 3.0 and the New Year period merely meant some pent-up demand. Yesterday was the fifth highest day for search activity on our platform and was at 98.13 per cent of our highest day ever – 25 August 2020.
“My gut instinct tells me that people have now priced in the end of stamp duty. When it comes back at the end of March, it is what it is. People are clearly not going to let it get in the way of their need to move home.”
The stamp duty holiday was thought to be driving a rush of buyers before the incentive ends on 31 March.
Many experts have said buyers would need to have started the homebuying process by Christmas to be in with a chance of completing by the deadline.
It had been feared the end of the holiday could lead to a sharp drop in activity.
Chris Sykes, mortgage consultant at Private Finance, said: “We have seen the large number enquiries continuing of late despite the current situation and it seems that this lockdown and now talk of restrictions remaining in place for the long term has further entrenched buyers desire to move to have more space both for work and outdoors.”