SPRING BUDGET: WHAT IT MEANS FOR YOU IN REAL TERMS!
This afternoon the Chancellor 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 31 2021.
Here’s what the Chancellor announced this lunchtime…
Until 30 June 2021, no stamp duty will be charged on a residential property purchased up to £500,000.
From the 1st of July until the 30 September 2021, no stamp duty will be charged on a residential property purchased up to £250,000.
From 1 October 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 the holiday is providing. This is potentially thousands of pounds and means people’s moving plans will not be disturbed. The Rutland Housing Market has remained strong in the first few months on 2021 and we expect these high levels of activity to continue for several months. We’ve looked a few different scenarios on how the Stamp Duty Holiday will change the amount you pay when buying a property in England.
If you are purchasing a property above £250,000 then you will want to complete your house purchase before the 1st July to maximise the benefit from the stamp duty holiday, however if you aren’t quite able to, you’ll still save!
Purchasers of 2nd properties have also benefitted from the Stamp Duty Holiday, we’ve looked at the same price points and how the stamp duty changes at these levels.
Lots of home buyers in Rutland have already benefitted from the Stamp Duty Holiday and with today’s 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.
Sunak 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.”
If the Spring Budget has made you want to proceed with your moving plans, we’d 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 01572 335005.
Thanks for reading.
We’re continuing to help Rutland buyers, sellers, tenants and landlords move home safely during the COVID-19 pandemic. To read our guide about Viewing a Property Safely please click here: http://bit.ly/NFGuidelines
For more info on today’s budget: https://www.gov.uk/government/topical-events/budget-2021
Copyright Newton Fallowell 2021