Stamp Duty Holiday Extended in Spring Budget
Quealy & Co Estate Agents in Sittingbourne bring you the very latest property industry news. In this update we will discuss the recent Spring Budget and predictions about the affect it will have on the property market.
After lots of rumours, and arguments for and against the continuation of the Stamp Duty Holiday in England and Northern Ireland, Chancellor Rishi Sunak announced that the Stamp Duty Holiday will be extended until the end of June. There will then be a further extension to September with different terms.
We believe the news from this week’s budget is great for homebuyers in the Sittingbourne area who will have been concerned that their transactions wouldn’t complete in time to take advantage of the savings. Of course, it also means that some pressure will be lifted on conveyancers, surveyors and lenders.
The original Stamp Duty Holiday in July 2020 was a shot in the arm for the property market with homebuyers positively flocking to take advantage of it and search for their dream home in Kent.
It was a major boost to the whole market and now this further extension and the introduction of the new mortgage guarantee scheme will further boost the property sector.
Stamp Duty Holiday Extended
Stamp Duty is a tax on property, with certain amounts needing to be paid dependent on the price of a property. Back in July last year, Mr Sunak told homebuyers that they no longer needed to pay it on the purchase of a main home up to £500,000.
This was fantastic news and boosted the market across the UK – something that was very much needed during these uncertain times.
As the budget approached, there has been much speculation and even petitions calling on the Stamp Duty Holiday to be extended – and finally it has been, until June 30, 2021.
More good news!
After June, the price point at which you need to pay Stamp Duty will be £250,000 (originally it was £125,000). After that, from October 1, it’s back to normal and down to £125,000.
This should reduce worries about whether purchases agreed will miss the original deadline for the nil-rate tax.
We believe that Stamp Duty should be due for a more comprehensive overhaul long-term, so expect this to remain in the news over the coming months. Meanwhile, if you are thinking of selling your property in the Sittingbourne area then there’s still time to get moving and make a saving.
Find out all the official Stamp Duty guidance at gov.uk. or give the Quealy team a call, we would be happy to guide you.
Mortgage Guarantee Scheme from April
In addition to the headline-grabbing news about Stamp Duty, Chancellor Rishi Sunak also announced that the Government would guarantee 95 per cent mortgages for property purchases up to £600,000.
This is brilliant news because lenders should now have the confidence to lend as the Government will back portions of the mortgages. If you are a first-time buyer wanting to get on to the property ladder, it means you won’t have to save quite as much money for a deposit.
This is excellent news for first-time buyers, who want to get on the property ladder and for existing homeowners who want to re-mortgage to release equity or up-size.