Stamp Duty Extension And Further Support In Housing Market
There will be many property buyers feeling a sense of relief with the announcement that the stamp duty holiday has been extended.
While this measure has been tipped for some weeks, the March 31st deadline was looming. Now, these buyers can relax, as their deal should conclude in time to save up to £15,000.
There has also been additional support announced for property buyers who can only raise a modest deposit.
If you are looking to enter the housing market on the back of these announcements, we are more than happy to assist you. Please contact Regal Estates today.
Stamp duty holiday extension offers relief to many buyers
The Chancellor, Rishi Sunak, has announced an extension of the stamp duty holiday until June 30 2021.
Following this date, the nil rate band for stamp duty will be set at £250,000 until the end of September.
On October 1st 2021, the nil rate band will return to the previous £125,000.
The additional three months of the stamp duty holiday will provide comfort for buyers and vendors whose property deal was still in the process of being completed.
Many would-be buyers were concerned at the thought of having to pay the full stamp duty to complete their move. In some cases, this would add £15,000 to the price of buying a home.
This rate applies only to home buyers in England and Northern Ireland. There are different schemes in place for property buyers in Scotland and Wales. It will be up to those nations to decide if they wish to follow suit or offer a similar scheme.
In his own words, Rishi Sunak said; “I can announce today the £500,000 nil rate band will not end on March 31, it will end on June 30. Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September - and we will only return to the usual level of £125,000 from October 1”.
Mortgage guarantee scheme to be implemented
There will be additional support provided for people looking to purchase property with a 5% deposit. This scheme will be available to first-time buyers, and existing homeowners. The scheme will be available for property purchases for up to £600,000.
In Parliament, the Chancellor said; “Lenders who provide mortgages to homebuyers who can only afford a 5% deposit will benefit from a Government guarantee on those mortgages. ’m pleased to say that several of the country’s largest lenders including Lloyds, NatWest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month, and I know more, including Virgin Money will follow shortly after.”
If you are interested in our lettings or property management services or you are looking to buy, sell, let or rent property in or around Willesden Green or within North West London, call us on 020 8459 2530 and a member of our estate and letting agent team will be happy to help.