Business
MARIUS NEWS: The impact of coronavirus on the market: Banks call for freeze on UK housing market https://www.ft.com/content/c08ec3d9-079e-40ff-baae-11388c650f6c Coronavirus lockdown hits lenders’ ability to offer mortgages and evaluate properties Banks are pressing for a full suspension of the housing market after the UK government told buyers and sellers to delay transactions because of the coronavirus outbreak. In talks between lenders and ministers, banks have expressed concern about the impact of the pandemic on valuations. They are also concerned about granting credit when the economy is in freefall, according to senior bankers. The government has urged buyers and sellers to delay moving. It said no visitors were allowed into properties while the ‘stay-at-home’ measures were in force, including estate agents, surveyors or potential buyers. Lloyds Banking Group and Barclays, two of the UK’s biggest lenders, are temporarily pulling many of their mortgages. Lloyds has stopped offering mortgages or remortgages through brokers unless the customer has a deposit of at least 40 per cent of the value of the property. Laura Conduit, a property lawyer at Farrers, said: “The strict legal position is if you have exchanged and have a completion date, you must complete on that date. It’s going to come down to how nice people are.” CHRIS NEWS: https://www.homesandproperty.co.uk/property-news/budget-2020-stamp-duty-surcharge-london-property-a137291.html How the Budget 2020 will impact stamp duty:what will the two per cent surcharge for overseas buyers mean for London property? A two per cent stamp duty surcharge for non-resident homebuyers was announced by Chancellor Rishi Sunak in his Budget. Treasury forecasts predict a surge in buyers ahead of the April 2021 deadline with stamp duty receipts expected to increase by £250 million in the coming tax year before dropping by £355 million in 2021-22. They are then expected to pick up again in 2022-23, before holding at £105 million per year. The Chancellor said the money raised from this tax will be used to fund 6,000 new homes for homeless people. The new surcharge for overseas buyers is expected to affect 70,000 of the UK’s total 1.2 million annual property transactions, with most of the impact likely to be in London, the UK’s most international market. London’s upfront buying cost may have increased but, with some of the lowest owning costs and selling taxes, it still costs considerably less to be an overseas buyer than in Hong Kong, where overseas buyers pay an additional 33.3 per cent of the purchase price in tax. QUESTION OF THE WEEK: "I exchanged contracts on a property and completion is due for 2 weeks. Given the current health crisis, what should I do if I am not able to complete due to the move in company cancelling our booking?"