There were a number of measures announced in this week’ s budget, which are specifically aimed at home buyers – which is good news if you are planning to purchase a new home!
Here is our short summary of some of the measures, which could assist you in your next purchase:
The stamp duty holiday has been extended
The existing stamp duty holiday for home buyers in England and Northern Ireland (which was due to finish in March this year), has been extended until the end of June 2021. So, if you are currently in the process of buying a home or you are just about to put in an offer or reserve a new home, there should still be time for you to capitalize on this tax saving. The stamp duty holiday applies to property purchases up to £500,000.
The nil stamp duty threshold will be doubled (temporarily)
The current nil stamp duty threshold is set at £125,000. This means that (once the stamp duty holiday has ended), all homes above this value will be subject to stamp duty. However, to ease the transition following the end of the stamp duty holiday on 30th June this year, the threshold will be temporarily doubled (from £125,000 to £250,000). This means, you won’t have to pay stamp duty on purchases under £250,000. For purchases over this threshold, there will still be some savings to be made too. There will be a return to the usual threshold of £125,000 on 1st October 2021.
A new 95% mortgage guarantee scheme
The Chancellor has announced a new, government backed mortgage guarantee scheme, which will come into effect in April this year. The new government backed 95% mortgage scheme will be available to all buyers (of properties costing up to £600,000), and it is designed to make home ownership more accessible for first time buyers and those with smaller deposits. The scheme will be available from April this year, until December 31st 2022. These new mortgages will be guaranteed by the government, removing the risk for lenders.
Andy Howell, General Manager, Slough Urban Renewal (SUR) said: “The budget has delivered some welcome news for today’s home buyers. The extension of the stamp duty holiday, the changes to the nil stamp duty threshold and the introduction of a new 95% mortgage guarantee scheme, will all play their part in keeping the property market moving.”
“For purchasers at Novus Apartments, our new collection of homes in Slough town centre, the stamp duty holiday will deliver additional savings. Alongside our own incentives, which currently include legal fees and one year’s service charge paid, the stamp duty savings mean that there may have never be a better time to buy here!”