Predicting the highs and lows of the housing market is something of a national obsession in the UK but there are several factors which point to a possible boom in the coming months.
Stamp duty changes
First, stamp duty is set to increase when the temporary increases to thresholds, which were put in place in September 2022, come to an end.
First-time buyers will be hit particularly hard by the changes from 1st April:
- the nil rate threshold which is currently £250,000 will return to the previous level of £125,000.
- the nil rate threshold for first-time buyers which is currently £425,000 will return to the previous level of £300,000; and
- the maximum purchase price for which First-Time Buyers Relief (a reduced stamp duty rate) can be claimed will return to the previous level of £500,000 (from £625,000 currently).
So there will be quite an incentive to complete sales before these changes take effect and this is likely to put pressure on conveyancing teams, as clients clamour to get their purchases through in time.
Loosening the purse strings?
At the same time, the government wants mortgage lenders to relax their lending rules to help propel first time buyers onto the housing ladder. It’s been reported that the Financial Conduct Authority will look at the limits on how much banks are allowed to lend, to help the government’s push for growth. This may very well result in pushing up the number of first-time buyers, unlocking extra sales all the way up the property ladder.
Conveyancing businesses are particularly vulnerable
The housing market is a barometer of the wider economy and conveyancing teams are vulnerable to the economic cycle. Law firms therefore face a management challenge – trying to stay one-step ahead and get their staffing levels right for their clients’ needs.
No one wants stressed, burned out staff who are struggling with a surge in work that they aren’t properly resourced for – and no law firm wants to have to turn away new business because they can’t increase their capacity quickly enough.
How can we help?
Global BPO can help with our offshore teams based in South Africa who work seamlessly and securely with our clients’ onshore workforces, increasing productivity and delivering savings.
We have been providing bespoke process services to our law firm clients since 2001 and our conveyancing support services remain in high demand – helping property teams in the UK to succeed, whatever the financial weather!
We source and manage teams of skilled conveyancing administrators and executives to support your property department, removing the burden of recruitment, onboarding and day-to-day management – we deal with it all.
Talk to us
To find out how we could assist you, contact our Client Manager, Suzie Young, at: suzie@globalbpo.co.uk.
