What does the budget mean for the housing market?

What does the budget mean for the housing market?

A number or measures were announced in the Spring budget for the housing market, here is a summary of what you need to know.

Stamp Duty Holiday Extension

The temporary stamp duty holiday in England and Northern Ireland has been extended by three months to 30th June 2021.

Stamp Duty is a lump-sum tax that is due on purchases of property or land. The rate of tax depends on the price and type (i.e residential or commercial).

The current threshold is set at £500,000. For a smooth transition back to the previous rates, the threshold will then be set at £250,000 until the end of September and return the usual threshold of £125,000 on 1st October 2021.

It isn’t just first-time buyers that will benefit from this, landlords have a huge opportunity to expand portfolios as stamp duty bills have been significantly reduced for properties under £500,000 by the Chancellor.

“This extension will be very welcome for everyone currently going through the sales process or those who have just agreed a sale, hoping to take advantage of the savings” Director Justin Hemming commented.

Mortgage Guarantee Scheme

Launching in April, this government guarantee will help buyers with small deposits get onto the property ladder with a 95% loan to value mortgage.

Low-deposit mortgages have mostly been unavailable from lenders during the coronavirus pandemic.

This policy means the Treasury will guarantee parts of the loans on properties worth up to £600,000 in order to encourage lenders to reintroduce low-deposit mortgages. The Chancellor has confirmed many big lenders, including Santander, Lloyds, Barclays and HSBC will be backing the scheme, opening up the market for many first time buyers.

If you are thinking of moving home and want to take advantage of the stamp duty holiday, or would like to speak to a property professional following these announcements, you can contact us on 0330 135 9930 or email info@vision-properties.co.uk. We’ve always got time to talk property.

More information on the Spring budget can be found here.