Firms must be ‘stamp duty ready’ ahead of the upcoming change to stamp duty thresholds, warns Target Group.
This preparation is crucial to avoid bottlenecks and maintain service levels as the UK mortgage and property markets brace for increased demand.
According to Target, firms that do not prepare risk overwhelming their processes, leading to delays and dissatisfaction for clients.
As first-time buyers and home movers look to complete transactions before the end of March, a spike in activity is anticipated.
Historical trends indicate that ‘cliff-edge’ deadlines and stamp duty ‘holidays’ have previously caused surges in demand, which increased workloads for brokers, lenders, and conveyancers, often resulting in operational backlogs at HM Land Registry.
Target calls on the market to learn from these past disruptions and to be prepared for the demand.
The Association of Mortgage Intermediaries (AMI) and the Intermediary Mortgage Lenders Association (IMLA) have also advised their members to manage borrower expectations and prepare for a worst-case scenario if they miss the cut-off.
Missing the deadline could mean higher costs for borrowers and pose a reputational risk for all parties involved.
Melanie Spencer, sales and growth lead at Target, said: “Given how bloated transaction times have become, there’s every chance that those in the process or getting ready to move will have likely missed the boat.
“While a good broker will already be having this conversation with clients to manage expectations and make the necessary adjustments to budgets, it won’t stop buyers from trying.
“Firms absolutely need to prepare for a spike in activity and be ‘stamp duty ready’ before the new thresholds take effect.
Spencer added: “For those that remember the previous stamp duty holiday, the scars will still be very fresh.
“Arguably, many sectors are still recovering as workloads became unrealistic, client expectations were high, and people left the industry.
“To avoid something like this again, firms at every level need to be looking at their processes and their current systems to ensure they can keep pace if things escalate again.
She said: “There’s no doubt technology will play a critical role, helping to drive efficiencies in mortgage application, lender decision-making and throughout the entire process to help facilitate transactions and minimise the burden on firms and their staff.
“Outsourcing key processes will be an asset too as firms look to avoid operational strain, maintain service and avoid reputational damage.”
