The Budget announcement on 3rd March has provided clear relief for buyers through the extension of the Stamp Duty Land Tax holiday until 30th June. It will then be tapered by extending the nil band rate to £250,000 to 30th September, before returning to the pre-Covid threshold of £125,000 by 1st October.
The Chancellor also confirmed that there is more help for future buyers in the shape of a new mortgage guarantee for buyers borrowing at 95% for up to a value of £600,000.
Here is our reaction to the Budget and what this will mean for the property market.
Robert McLaughlin, Sales Director at KFH, said, “We welcome the Government’s decision to extend the existing Stamp Duty Land Tax holiday until the end of June, as well as the additional extension on properties up to £250,000 to the end of September. This will allow more buyers and sellers to continue saving a considerable amount of money in the process, which will have a ripple effect on economic activity in other sectors such as construction and retail. People consume more goods and services when they move home, as they organise their finances and utilities, decorate and renovate.
“The extension will also alleviate some of the pressure placed on the property industry as a result of the latest lockdown. It allows time for Local Authorities to complete searches and banks and building societies to produce mortgage offers. It will be interesting to see how the scheme contributes to driving sales demand over the coming months.”
Kelly Wicks, Technical Director at Kinleigh Financial Services, said, “The introduction of the new mortgage guarantee scheme and the return of 95% loan-to-value mortgages will really help some buyers bring their plans forward, especially if they managed to save more than they were expecting to while in the various lockdowns. It will also provide a helping hand to people who would like to trade up due to the smaller deposit needed.
We expect to see an influx of first time buyers taking advantage of the scheme, which in turn will increase property transactions. The government clearly understands the importance of the housing sector to the broader economy, and this is good news for the industry as a whole.
While landlords failed to get a mention explicitly, the extension of the furlough scheme, the delay in the announcement of any capital gains increases and more general support for people in work means many of the lifelines available to homeowners and those renting remain intact."
If you have any questions about the market or need help with your next move, please contact your local KFH branch.