Budget 2021: Sunak announces stamp duty nil rate extension
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Research from online mortgage broker Mojo Mortgages looked at the current waiting times for local authority searches to be completed across the country. These searches can drastically impact how long it takes for a property transaction to be completed. Figures from the research suggest the time taken by local authorities to complete these searches varies depending on local councils.
To give buyers more of an understanding of how long transactions can take, Mojo combined the latest local authority search data with the average remaining conveyancing time of nine weeks to work out the average total conveyancing time for each local authority.
Some local authorities completed within just six days while others could take more than six months.
Ashfield District in Nottinghamshire came out on top as the least likely to be affected by local authority search delays, taking just five days on average.
Other speedy searches were conducted by Bassetlaw, East Devon and Norwich City council, all taking just six days.
In fact, Cheshire East council, Crawley Borough council, Eastbourne, Haringey, North Lincolnshire, Stroud, Uttlesford and South Gloucestershire all took six days.
If purchases were successfully completed in these regions by June 30, 2021, buyers could save themselves thousands.
Mojo calculated the cost of a three bedroom semi-detached property for each local area based on Rightmove data.
The data used properties based in the main town of each local authority to see how much homeowners could save in those regions.
Homeowners buying a property in Haringey would save the most money with the average three bedroom semi-detached house costing a whopping £1,420,052.
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Prospective buyers for a home of this value could save £83,255 in stamp duty costs.
Buyers in Crawley could save themselves £4,619 with the average three-bed property costing £342,384.
Buyers in Exmouth in East Devon could save themselves £3,157 and those buying in Saffron Walden in Uttlesford could save £8,136 in stamp duty land tax.
At the other end of the spectrum, those in Hackney could face local search delays of 180 working days.
Havering and Dorset council have also recorded some of the slowest responses in the country taking 90 and 70 days respectively.
Durham County council (65 days), Newcastle City council (50 days), Lewisham council (45 days), Lichfield District council (40 days), Plymouth (40 days), Salisbury (35 days), South Staffordshire (35 days) Wiltshire (35 days) and Barnet council (35 days) have the slowest local authority searches and are most likely to delay conveyancing ahead of the stamp duty deadline on June 30.
If purchases were not completed in these regions by June 30 2021, it could lead to additional stamp duty costs for homebuyers purchasing a semi-detached three-bed home.
The average price for a semi-detached house in Hackney is £1,295,558 which means buyers could miss out on saving £70,805.
Buyers in Havering could be hit with a £12,103 stamp duty tax bill while those in Lewisham could end up paying £30,609.
Richard Hayes, CEO at Mojo Mortgages, said the stamp duty holiday has helped thousands of people buy a new home.
He continued: “The recent extension is good news for the many thousands of buyers still currently worried they would miss these savings, however with just eight weeks to go until the deadline there will be many wondering if they are going to complete on time, with conveyancers doing all they can to keep clients happy.
“Although these times are average and theoretical, they do help people realise how long things can take, and how tight it could be.
“If they do think they are at risk, it’s really important they speak to their conveyancer about no-search indemnity insurance.
“Of course, there is definitely the flip side of the coin where mortgages and conveyancing can get sorted much quicker than you expect.”
The stamp duty land tax holiday extension was initiated during Chancellor Rishi Sunak’s March Budget.
The property tax break, which was originally put in place in July 2020, means prospective buyers looking to purchase a home for £500,000 or less are not required to pay stamp duty.
The £500,000 threshold will drop to £250,000 at the beginning of July before then returning to £125,000 at the beginning of October.
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