With the most recent budget announcement today (Wednesday 3rd March), Rishi Sunak has confirmed that there will be an extension to his zero-rate stamp duty holiday and the launch of a new Help-to-Buy style mortgage deposit scheme for first time buyers.
This means that the stamp duty holiday for homes under £500,000 in England and Northern Ireland has been extended to the end of June, as expected, and applied to sales of up to £250,000 until end of September.
The pre-Covid stamp duty rates will therefore be reintroduced on October 1st 2021.
The Chancellor also announced that the proposed mortgage guarantee scheme for those able to save up a 5% deposit, (which is almost identical to the previous Help to Buy mortgage equity scheme), will start on April 1st.
The extension of the stamp duty holiday will further boost an already strong property market. It not only takes away the risk of current sales falling through as the initial deadline approaches, but also gives those who are looking to buy and/or sell in the coming months the opportunity to also benefit from these savings.
What’s more interesting in the budget is opening up the 95% mortgages to first time buyers, which will bring a massive boost to ‘the first step on the ladder’ market.
We welcome these announcements and the opportunity it gives to people who were waiting to making to make the decision to buy or sell a property. We’ve already had a number people instruct us today based on the budget proposals.
For clients looking to benefit from this bonus period it’s essential they’re using good mortgage brokers, and solicitors and are very proactive to get ahead of the new deadline.
We look forward to assisting our new and existing clients with all their property requirements, (including any free advice) in the coming months.
Please feel free to contact us today or call our Head Office on 020 8958 1118.