Ahead of the stamp duty changes on 1st April, the UK property market is once again facing a familiar challenge.
The Association of Mortgage Intermediaries (AMI) and the Intermediary Mortgage Lenders Association (IMLA) have both issued warnings about the potential fallout from the 2025 stamp duty deadline anticipating an “inevitable bottleneck” ahead of the deadline.
Their concerns seem valid, given the chaos and inefficiencies we saw during the 2020 stamp duty holiday, when frantic activity overloaded the system, leaving brokers, conveyancers, and buyers to bear the brunt of a policy designed to boost the market but fraught with unintended consequences.
The human toll of these “cliff-edge” tax relief policies is undeniable. Conveyancers, mortgage brokers, underwriters, and other professionals faced burnout, buyers endured delays and unexpected costs and the market experienced extreme volatility.
REFLECTIONS AND REVELATIONS
These cycles of urgency and inefficiency raise an important question: Are we doomed to repeat these mistakes, or can government and industry work together to create a more sustainable and equitable system?
The approach to stamp duty relief we’ve seen to-date has relied heavily on temporary incentives with hard deadlines, creating artificial surges in market activity.
While these measures aim to stimulate transactions, they often distort natural market behaviour, leading to short-term gains but long-term instability.
OVERWHELMING CASE LOAD
Take the 2020 stamp duty holiday as an example. The policy spurred a frenzy of activity, but the sudden influx of transactions overwhelmed conveyancers and brokers, resulting in missed deadlines, frustrated buyers, and a system stretched to its breaking point.
Ahead of the 2025 deadline, we’ll likely see history repeat itself. Without systemic reform, the market may again face an influx of transactions leading up to the deadline, followed by a sharp decline, perpetuating the boom-and-bust cycle.
Professionals across the property sector, including brokers and conveyancers, require greater support and a more predictable market to ensure they can provide the best service to their clients.
A BETTER WAY FORWARD
To break this cycle, the UK needs a strategic overhaul of how stamp duty policies are designed and implemented. Here are three key areas for reform.
Permanent tax reform
Stamp duty thresholds should be re-evaluated and adjusted to better reflect current property prices and market conditions. Introducing a tiered or phased approach to tax relief would encourage steady, gradual transactions rather than the peaks and troughs caused by artificial deadlines.
Improved industry collaboration
IMLA’s suggestion for improved open communication among lenders, brokers, and conveyancers is key. The government should take an active role in facilitating these collaborations, ensuring that all stakeholders have a voice in shaping future policies.
Sector-wide resilience planning
Policymakers and industry leaders should work together to create contingency plans for future tax changes. Increased resources and support for property professionals during peak periods – including funding for temporary staffing or streamlined administrative tools – could alleviate pressure on the system.
MARKET RESPONSIBILITY
The property sector must take responsibility for raising professional standards and running resilient, adaptable businesses.
Rather than reacting to policy changes with frustration, firms should focus on delivering a seamless blend of digital efficiency and personal service.
Learning from customer-centric industries like fintech and e-commerce can help modernise property transactions. The sector must set an example by prioritising innovation, efficiency, and accountability over dependence on external policy shifts.
DIGITAL SOLUTIONS
Technology also has a critical role to play in stabilising the property market. Digital tools can significantly reduce administrative burdens and improve efficiency, particularly during periods of heightened activity.
For instance, Movera’s investments in automation and innovation have shown how technology can help conveyancers and brokers navigate challenging periods more effectively. Scaling such innovations across the industry could transform how transactions are managed, ensuring smoother operations even during peak times.
AVOIDING THE CLIFF EDGE
The property market cannot afford to repeat the mistakes of the past. The boom-and-bust cycles created by poorly designed stamp duty policies harm buyers and professionals alike, eroding trust in the system and undermining market stability.
Policymakers and industry professionals must work together to implement long-term reforms that promote stability, fairness, and accessibility.
By learning from the mistakes of the past and embracing digital innovation, we can build a property market that benefits everyone, not just during a temporary tax break, but for the long term.
Policymakers, brokers, and property professionals need to advocate for lasting reform to ensure a more resilient and equitable property market for years to come.
Nick Hale is Chief Executive of Movera
