Spring Budget: Property Market Update

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by JASON TREADWELL, Managing Director

On Wednesday March 3rd, the Chancellor of the Exchequer, Rishi Sunak, outlined his plans to get England back on track as we come out of the pandemic. Among furlough extensions, extra support for the self-employed and business loan schemes was the welcome news that the Stamp Duty holiday is being extended. When it was introduced, the original deadline was March 31st 2021.

Here’s what the Chancellor announced…

Until June 30th 2021, no Stamp Duty will be charged on a residential property purchased up to £500,000.

From July 1st until September 30th 2021, no Stamp Duty will be charged on a residential property purchased up to £250,000.

From October 1st 2021, the Stamp Duty rate returns to pre-COVID-19 thresholds.

What it Means to Movers…

For people with sales currently in our pipeline, it means they will not miss out on the savings that the holiday is providing. This is potentially thousands of pounds and means people’s moving plans will not be disturbed. The Bourne housing market has remained strong in the first few months of 2021 and we expect these high levels of activity to continue for several months.

If you are purchasing a property above £250,000 then you will want to complete your house purchase before July 1st to maximise the benefit from the Stamp Duty holiday; however, if you aren’t quite able to, you’ll still save!
Lots of home buyers in Bourne have already benefitted from the Stamp Duty holiday and with this announcement, even more are set to save!

Mortgage Market Opened Up…

There was also good news for people planning to buy a home but struggling to save what is often a sizeable deposit. The Chancellor announced a Mortgage Guarantee Scheme that means homebuyers will be able to access 95% mortgages, backed by the Government, from High Street banks and lenders. Lenders are being offered incentives to provide mortgages to first-time buyers and existing homeowners, with just 5% deposits to buy homes worth up to £600,000.

The Chancellor said, “This will give people the chance to go from ‘Generation Rent’ to ‘Generation Buy’”.

Newton Fallowell

If the Spring Budget has made you want to proceed with your moving plans, we would love to help you. To find out more about what the Stamp Duty holiday extension and Government-backed Mortgage Guarantee Scheme means to you, call us on 01778 422567.

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