CHAPS extended hours confirmed from Monday June 20

Operating hours for CHAPS - the payment system used to trasfer funds for property transactions - will be extended by one hour and 40 minutes from Monday June 20.

The in-principle announcement of the extension was made last year but the date has been confirmed by the company that operates CHAPS, which stands for Clearing House Automated Payment System.

This means that payments for houses, and other payments using the systen, can be made up to 6pm on weekdays from June 20 instead of the current 4.20pm.

CHAPS says this “better aligns the settlement day with the typical business day and will give individuals and businesses alike, more time to make a critical or high value payment.” 

The Bank of England, which initiated the change, says the new closing time comes as a result of consultation with various parties while the Law Society says it is “a positive step that increases the likelihood of transactions being completed on the agreed date, and lessens the chances of home buyers not being able to move into their new property.”

Some members of the removals industry have suggested this change may place a greater burden on estate agents, removal operators and customers, and in December the British Association of Removers came out officially against the move.

“This may lead to detrimental consequences increasing cost, staff welfare and morale. The client could well be in the unreasonable position of having to either work late into the night, to achieve some level of comfort in their new home or potentially need to fund a night’s accommodation in a hotel, thus incurring yet more expense” says the BAR, which describes the CHAPS change as “ill-advised.”