We are all aware of the temporary measures brought in last July to help boost homebuying during the pandemic. Whilst it has certainly got the market moving, by February this year it looked set to leave a sour taste in the mouths of buyers who would not have been able to complete their purchase by the end of March.
A reminder of Chancellor Rishi Sunak’s recent budget announcements:
- The stamp duty land tax on main home purchases of up to £500,000.00 will be extended in England and Northern Ireland to 30 June 2021.
- The stamp duty land tax nil rate band will be set at £250,000.00 until the end of September 2021 and thereafter will revert back to £125,000.00, meaning that buyers may not incur any SDLT on purchases up to £250,000 until September.
- The first-time buyers threshold set at £300,000.00 will come into force again after 1 July 2021.
- The Government will provide a 95% Mortgage Scheme by giving a mortgage guarantee to Lenders for first-time buyers with a 5% deposit. The scheme will run for new mortgage applications from April and will run until the end of 2022. The scheme will only be available on standard residential mortgages, so will not apply to “Buy to Let” properties or “Second Homes”. The mortgages must be on a repayment basis and not interest-only.
What does this mean for me as a house buyer?
The stamp duty holiday extension will have provided many buyers with the opportunity to purchase properties that would otherwise have been out of their budget. In some cases, this has even meant a saving to buyers of up to £15,000.00 on the first £500,000.00 of the purchase price.
The stamp duty holiday although prompting many to make the move and buy a new home, would appear to have also driven up the house prices. Experts believe that any gain made in respect of paying less stamp duty has been partially offset by the house price itself.
Why choose Progression to buy or sell your house?
We pride ourselves on offering you more than a mere ‘conveyancing service’. We provide you with expert advice on your transaction from start to finish, highlighting any potential issues or pitfalls with the property and options to rectify them where necessary. Whether it is your forever home or an investment property, you want to be certain that you know as much as possible about the property before you commit to buy, or to prevent any future claims when you sell.
The content of this post does not constitute legal advice and should not be relied upon. The content is subject to change and we accept no liability for individuals relying on the information within this article.