This past year has seen the constructions and trade sector struggle and then thrive at the hands of Coronavirus. Now, n light of the new Tier 4 being put in place across London, the South-East and East of England, the sectors are looking towards the solutions that will help the sector continue to grow in 2021.
The booming housing market as a result of the stamp duty holiday has caused an unprecedented boom, as more people looked to support their new working habits with more space and a fresh environment. With the productivity of construction workers and tradespeople surging, one way of helping this upward trajectory of growth to continue throughout the new year is through the extension of the stamp duty holiday.
Benjamin Dyer, CEO of Powered Now, an app designed to take the pain out of admin and paperwork for the trade sector, discusses what the stamp duty holiday means for the trades and the UK’s economy, as well as calling for a permanent stamp duty holiday:
“At our end of the market, trades companies that have up to 15 staff, there is very little definition between domestic and commercial. Our users can end up fitting a homeowners gas central heating one day, then acting as a contractor on an estate of new builds the next. Our market is built on the blunt pragmatism, broadly speaking they go where the work is.
There has been a lot of discussions recently about the impact of the pandemic on the trade, house prices and the Chancellor’s hope we can spend our way out of a second recession. When the Chancellor announced a stamp duty holiday at the start of the crisis he set a fire under a simmering property market, thousands of homeowners – as well as first-time buyers – took advantage of this scheme to up sticks and move.
In order to sustain this growth in the coming year, we would encourage the government to make this stamp duty cut permanent beyond the March 31st deadline.
You could argue, as many have, this cut has created a sugar rush. An artificial spiking the market simply didn’t need as it was always going to explode post lockdown. In a word, this is rubbish. The truth is, this is money that is being reinvested into property and ultimately back into the economy. Homeowners are not making a saving; they are either stepping up or improving with everyone winning. The boom in the market has caused 950k small trade companies to not only ride the storm but ultimately thrive, and because of this we hope that come 31st March, it continues.”