So what did the Budget have to say today for the property market…….
The stamp duty holiday has been extended:
- Until 30 June, it stays ‘as is’ with nil rate being charged on a residential property up to £ 500,000
- From 1 July until 30 September no stamp duty will be charged on a residential property up to £ 250,000
- From 1 October, stamp duty back to pre-Covid levels (£125,000 nil rate band).
There will be a huge sigh of relief for sellers and buyers alike that the Chancellor has listened to the concerns from the property industry that it was creating a ‘cliff-edge’ and risked thousands of buyers pulling out of transactions if they missed the now previous deadline of 31 March for the tax break.
In addition for first-time buyers purchasing properties worth up to £ 600,000:
- There is to be a “government guarantee” on mortgages, with a deposit of 5%. According to the Chancellor, many big lenders are already backing the scheme and more to follow. A big change given most banks stopped providing mortgages with only 5% deposits during the pandemic.
Recognising the importance of the housing market to the wider economy, the Chancellor confirms he is seeking to all he can to support ‘Generation Rent’ become ‘Generation Buy’ and avoid a sudden cut-off point with the potential of seriously damaging this important part of the economy. Let us see if the property supply matches the demand as this is key to ensuring considered growth within the property market.
As ever, we are always on hand to provide advice if you are thinking of making a move, call us today on 01305 757300.