The Budget 2021 – Stamp Duty Holiday Extension Confirmed

Downing Street

10 Mar The Budget 2021 – Stamp Duty Holiday Extension Confirmed

As the original Stamp Duty Holiday deadline edged its way closer and closer, we were delighted when the Chancellor unofficially announced an extension last week before making it official in the latest Budget statement.

The Budget Statement was delivered by the Chancellor of the Exchequer and outlines the Government’s plans for the year, including any changes in taxation and the state of the economy as well as forecasting for the next 12 months.

There was some very good news for home buyers in this year’s budget; let’s take a look at how it affects the property market and our clients.

It looks like the property market will continue to be a busy place so if you’re thinking about moving, now might be the best time; if you are looking to move in the near future make sure you get in touch with us on 01753 683000 or email us.

Stamp Duty Holiday

The announcement that everyone was waiting for was news on the Stamp Duty Holiday and whether or not there’d be an extension. Following the unofficial rumours coming out of the Chancellor’s office the week before we were delighted when it was made official in the Budget Statement.

This means that hundreds of thousands more people will be able to get their moves completed in time to benefit from the savings on offer.

It’s been well documented that the Stamp Duty Holiday was brought in last year in order to stimulate the housing market ad set the economy on the road to recovery. It meant that people would pay £0 Stamp Duty on properties up to £500,000. The original deadline was March 30th 2021; however, in order to avoid a ‘slamming of the door’ the Government have explained that people now have until June 30th to complete on their purchase.

This will be followed up by a transition period; this means that the nil rate band for Stamp Duty will be £250,000 which is double the normal rate. This will last until the end of September before the threshold returns to £125,000 on 1st October.

Mortgages Guarantee

With increased movement in the property market comes increased borrowing. For years, saving up for a deposit to get onto the property ladder has been the biggest obstacle first-time buyers have had to overcome. Paying rent while saving for a 10-20% deposit has been untenable for many potential first-time buyers.

In the last few years, affordability criteria have been extensive and often confusing. All the affordability checks in place now will still apply, and will hinge on whether or not the borrowers can afford the monthly payments.

The Government has announced a new scheme to help people gain access to 95% mortgages on properties up to £600,000. In exchange for the Government acting as a guarantor for the borrowers, lenders who have signed up to the scheme have to sell 95% mortgage products.

This scheme is available for first-time buyers and existing home owners. There couldn’t be a better time to move home, so make sure you get in touch.

Contact Us

Remember, as the leading independent estate agents in Colnbrook and the surrounding areas we are location experts and are always happy to help. So, if you are thinking of moving house or have seen a property on our website, contact us on 01753 683000 or email us. You can also follow us on FacebookLinkedIn and Instagram.