Pressure is mounting on the UK government Chancellor Rishi Sunak to extend the stamp duty holiday in order to avoid thousands of property purchases falling out of bed because they cannot meet the 31 March deadline.

• Experts warn thousands of property transactions will run out of time and collapse 
• Thousands of Mortgages approved on the basis that no stamp duty is payable 
• Tens of thousands will miss the 31 March stamp duty holiday deadline
• Borrowers could have to find up to £15,000 more to fund their purchase
• Lenders were may withdraw mortgage offers, causing thousands of transactions to collapse
• Not enough man power in the market to get these transactions through before 31 March 2021 
• Mortgage processing delays, shortage of surveyors and solicitors available to complete legal work 
• Bank of England figures published this morning reveal a spike mortgages approved in October
• Mortgages up 5.9% on previous month to 97,532 and 51% up on the same period last year. 
• HMRC figures showed housing transactions hit 105,630 last month, up 9.8% on September 2020 
• Transaction completions generally follow mortgage approvals by between three and five months
• Zoopla is predicting transactions in December to hit 140,000, the highest December since 2006
• Mortgage rates rising despite record low Bank of England base near zero lending rates
• Mortgage lenders hiking rates amid the scramble taking advantage of borrowers’ panic 

Anthony Codling of property analysis firm Twindig said: 'The average rate for a new 95 per cent 2 year-fixed rate mortgage was 4.09 per cent in October 2020, an increase of 35 per cent since the start of 2020, according to the Bank of England.

House prices shrugged off the economic hit from Covid-19 have risen by about 6% this year

Andrew Wishart, UK economist at the research house said: 'The usual channels through which a recession hits the housing market, of rising unemployment and mortgage payment difficulties, have been mitigated by the furlough scheme, mortgage payment holidays, and a moratorium on repossessions. 

'Meanwhile, the market has been boosted by pent up demand from the first lockdown, a revaluation of space needs due to working from home, and an extra kick from the stamp duty holiday. 

'But the policy support that has protected and boosted the market this year is due to be withdrawn in 2021, just when we expect the unemployment rate to peak at 7%.

'The housing market has never escaped unscathed from a drop in employment of the scale we forecast. 

'In fact, in isolation the historical relationship between employment and house prices suggests a 25 per cent house price crash is in the offing. Our view, however, is that an annual fall closer to 5 per cent in Q4 2021 is more likely.' 

Tombs added: 'The outlook remains exceptionally unclear, given that government policies might change; the stamp duty holiday could be extended, or the government might follow through on plans to introduce a new mortgage guarantee scheme.' Source: This is Money.co.uk

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Millions of people face a bleak future post-Coronavirus lockdown, as businesses disappear and the job furlough scheme eventually comes to an end. However, life doesn’t have to end because of lockdown! You can join thousands of ordinary people who have increased their income and added streams of new income during this period. 

Are you ready to adapt to the new economic model?

As lockdown restrictions around the world are being eased, the economic model has subtly changed forever. How will you adapt to this new way of working and running a business, what obstacles and opportunities lies ahead? Will you be a participant or spectator in this revolution? 

By Charles Kelly, Wealth Mentor, Property Investor, Author of Yes, Money Can Buy You Happiness and creator of Money Tips Podcast.

There are more examples and practical steps to getting rich and being happy in my book, Yes, money can buy happiness, I cover the 3 R’s of Money Management, the Money B.E.L.I.E.F System and much more. Check it out on Amazon http://bit.ly/2MoneyBook.

If you’d like further information on wealth mentoring and coaching, how to survive the crisis and even quit the rat race, email me at [email protected] or send me a message through Facebook or my Money Tips Daily community. See more articles at www.moneytipsdaily.com