While the extension to the stamp duty holiday has been an open secret for weeks, it has now been officially confirmed by The Chancellor.
This news will be a relied for the many buyers who are still waiting for their property move to be completed.
However, it is likely some buyers will now be invigorated by the extension. There is also support for buyers who can only raise a modest deposit.
If any of the housing announcements in the March 2021 Budget has piqued your interested in the property market, please get in touch with HoldenCopley.
Extension should safeguard existing property transactions
The Chancellor, Rishi Sunak, has announced an extension of the stamp duty holiday until June 30.
Following this date, the nil rate band for stamp duty will be set at £250,000 until the end of September.
On October 1st 2021, the nil rate band will return to the previous £125,000.
The additional three months of the stamp duty holiday will provide comfort for buyers and vendors whose property deal was still in the process of being completed.
Many would-be buyers were concerned at the thought of having to pay the full stamp duty to complete their move. In some cases, this would add £15,000 to the price of buying a home.
This rate applies only to home buyers in England and Northern Ireland. There are different schemes in place for property buyers in Scotland and Wales. It will be up to those nations to decide if they wish to follow suit or offer a similar scheme.
In his own words, Rishi Sunak said; “I can announce today the £500,000 nil rate band will not end on March 31, it will end on June 30. Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September - and we will only return to the usual level of £125,000 from October 1”.
Initial thoughts from industry observers
Buying agent Henry Pryor said: “There will be a new cliff edge — it will just move from the end of March to the end of June. There will be a whole new load of people who will be wailing and gnashing their teeth because they could not get their deals over the line by June 30.”
Responding to the stamp duty extension, Francesca Carlesi, the Co-founder and CEO of Molo Finance, said; "The extension is a responsible move by the Government. Not only is it necessary to ensure market resilience and sustain the UK economy, but it is also welcome from a micro perspective too, with many consumers breathing a sigh of relief. The pandemic has dramatically impacted all of our lives and steps such as this are vital for us to rebuild.”
Mortgage guarantee scheme to be implemented
There will be additional support provided for people looking to purchase property with a 5% deposit. This scheme will be available to first-time buyers, and existing homeowners. The scheme will be available for property purchases for up to £600,000.
In Parliament, the Chancellor said; “Lenders who provide mortgages to homebuyers who can only afford a 5% deposit will benefit from a Government guarantee on those mortgages. ’m pleased to say that several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month, and I know more, including Virgin Money will follow shortly after.”
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing steven@holdencopley.co.uk.