Brokers have backed the stamp duty vacation extension as Twenty7Tec announced that mortgage searches have increased 44 percent since the relief began.
The technology provider found that 74 percent of brokers agree, “It’s right that Rishi Sunak should extend the stamp duty vacation.”
The data showed growth in search queries for residential mortgages of 48 percent and 27 percent for buy-to-let (BTL) in the 33 weeks from the tax vacation announcement on July 8, 2020 to February 24, 2021.
Also, mortgage documents generated increased 23 percent during the tax relief period.
The technology provider called on the Chancellor to put a throttling in tomorrow’s budget, saying on the contrary, “All he’s doing is moving the cliff further down and resuming this increased level of activity before another deadline.”
Regional search volume
In London, mortgage research increased 17 percent during the tax break period. Search for residential mortgages rose 34 percent, while searches for BTL products lagged behind, with a growth of 4 percent.
The proportion of BTL searches in the capital fell below the 30 percent pre-stamping holiday limit.
“If there are fewer first-time buyers with or over 90 percent loan-to-value, it is a real problem for the London scene if BTL makes up a smaller proportion,” says Twenty7Tec
In Manchester, mortgage searches increased 16 percent during the tax exemption period. Home mortgage searches rose five percent and a whopping 53 percent according to BTL.
In Liverpool, searches increased by 17 percent, including housing by 21 percent and BTL by six percent.
In Birmingham, the total number of searches increased by 25 percent. In Wales, searches increased 49 percent. In Scotland, the relief did not apply to purchases of second homes or to transactions valued at more than £ 250,000, but searches increased 28 percent.
Buy versus rescheduling
Nationwide, the share of purchase documents in searches rose from 49 percent to 62 percent, while the share of debt rescheduling documents fell from 52 percent to 38 percent. This partly reflected the number of people who took the mortgage payment vacation.