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Property matters: Good news from today’s Budget
Wednesday, March 3, 2021
For buyers and sellers, the Chancellor, Rishi Sunak, announced two pieces of good news in today’s Budget. Confirming speculation, the stamp duty holiday was given an extension until June 30th with a further, lower phase until the end of September 2021 and 95% mortgages are once again possible with the backing of a “government guarantee” for first time buyers.
The announcement of the phased extension of the stamp duty holiday is particularly welcome news to those currently in the process of purchasing a property and comes at a time when the property market traditionally sees peak activity. For residential property purchases completing by 30 June 2021, no stamp duty will be charged on the initial £500,000. Then, until 30 September 2021, no stamp duty will be charged on the initial £250,000. The threshold will then revert to £125,000.
The chancellor also announced further assistance for first-time buyers in the shape of a “government guarantee” on mortgages with a deposit of 5% to purchase properties worth up to £600,000. Rishi Sunak named several of the big lenders backing the scheme which aims to help more first-time buyers get that all-important first foot on the housing ladder.
The aim of both measures is to further stimulate the housing market, which is recognised for its importance to retail, employment levels and the wider economy. The Office of Budget Responsibility now forecasts a “swifter and more sustained recovery than expected” with the economy predicted to return to pre-Covid levels by the middle of next year according to Sunak, although the economy will be 3% smaller in five years’ time than it would have been but for the pandemic. For more details on the full extent of measures within the March Budget click here.
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