‘Crazy’ rush to buy homes in Harrogate as stamp duty holiday ends

Estate agents in Harrogate experienced a “crazy rush” to complete home purchases this week before the end of the stamp duty holiday.

One estate agent told the Stray Ferret yesterday was their busiest day in the last two years while a property expert said the government should have never imposed the holiday.

Completion day is always fraught for prospective home buyers and sellers. However, many will have been particularly nervous this week with £15,000 in stamp duty savings on the line.

From today, the tax free threshold falls from £500,000 to £250,000 and will drop again to the usual rate of £125,000 on October 1.

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Richard Smailes, a partner at Feather Smailes Scales, told the Stray Ferret:

“There was a mad rush to get everything completed by the end of play yesterday. We are still seeing plenty of interest and demand.

“Just because the deadline has gone it does not mean that the reasons for moving have gone away. People want more from their homes because they are spending more time there.

“FSS was very busy yesterday, we had an awful lot of completions on the books. We were geared up for it but it was our busiest day in the last couple of years.”

Harrogate Borough Council has also experienced a surge in search requests in recent months.

The local authority has struggled to cope with the demand at times but the situation has improved and the average wait is currently three weeks.

Alex Goldstein, an independent property expert in Harrogate, told the Stray Ferret:

“I said from the outset that we did not need the stamp duty holiday. We already had a very strong market before the tax break came into play.

“So what we have seen over the last year is prices go up significantly in the area. It seems the stamp duty was just added as part of the price of the property.

“This is what happens when the government tries to intervene in the market, it just creates a bigger problem for people.”

What has been your experience? Reach out to tell us your story by sending an email to contact@thestrayferret.co.uk.

Property searches ‘down to 12 days’ in Harrogate district

Home buyers in the Harrogate district have been given a second reason for optimism after the extension to the stamp duty holiday announced this week.

After months of complaints that its search process was taking too long, Harrogate Borough Council last night said it has reduced the average waiting time to just 12 days.

It is down from seven weeks, which buyers and estate agents said was causing significant delays to their purchases. However, at Wednesday night’s full council meeting, cabinet member for planning Cllr Tim Myatt said:

“As of Friday, we had 146 live searches in our system. In a normal situation, we would expect to have approximately 200 searches in the system at any point, therefore we no longer really have a backlog to speak of…

“We have trained additional council staff on the necessary process to complete searches and we have also contracted additional resource externally so the team are confident that they continue their positive performance.

“The team have worked very hard to overcome the challenge posed by the influx in search requests last year and I know the team are grateful for the support from members across the entire council.”

Cllr Myatt said simple searches requiring only information from HBC were taking an average of four days. For more complex searches needing information from North Yorkshire County Council, it was taking around 16 days, giving an average of 12 days.

In response, Cllr Samantha Mearns, who represents Knaresborough Scriven Park for the Conservatives and had asked for the update, said:

“We’re very grateful to the team for getting on with that, because clearly it has caused our residents some concern. It’s fantastic that you have got that under control. It’s just a shame North Yorkshire are slowing your average down.”

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News of the extension to the stamp duty holiday in the Budget this week has been welcomed by local estate agents. Chancellor Rishi Sunak announced that the end of the scheme for homes up to £500,000 would be moved from March 31 to June 30, followed by a tapering down to £250,000 until the end of September.

Tim Waring, head of residential at Lister Haigh, said it was a “welcome move”. He said:

“This will at least in part avoid the “cliff edge” scenario that has created so much pressure on the residential market in recent months. Help for those wanting to get on the property ladder, as opposed to renting, is another welcome move, all of which should stimulate the market during the remainder of 2021 as the lockdown restrictions gradually come to an end.”

Nick Simpson, co-founder and managing director of Linley & Simpson, added:

“The property industry was badly hit during the first national covid-19 lockdown, and the stamp duty holiday which Mr Sunak announced last June was a welcome shot-in-the-arm.

“It is clear that he has listened to the concerns of the residential property industry, and the stamp duty holiday extension, plus 95%, will particularly benefit first-time buyers and those looking to move in the next few weeks.”

The property market in the Harrogate district was extremely busy in the autumn following the introduction of the stamp duty holiday, but prospective buyers told the Stray Ferret they were concerned delays with searches would prevent them completing in time to avoid a major tax bill.

Mr Waring said estate agents will now wait to see the impact of the news on reduced search turn-around times so local buyers to take advantage of the scheme’s extension. He added:

“The stamp duty extension might relieve pressure in the short term, but it must be remembered sales have to complete, not just exchange, by the end of June to qualify. That is only three and half months away so if local search turnaround timescales don’t improve quickly, the number of homebuyers able to benefit from the extension may not anywhere near what the Chancellor might have expected.”