It’s happened – after lots of rumours, and arguments for and against the continuation of the Stamp Duty Holiday in England and Northern Ireland, Chancellor Rishi Sunak yesterday announced that the Stamp Duty Holiday will be extended until the end of June…and then there will be a further extension to September with different terms.

We firmly believe the news from this week’s budget is great for homebuyers in London who may have been concerned that their transactions wouldn’t complete in time to take advantage of the savings – and 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.

It was a major boost to the whole market and now this further extension and also 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.

And there’s more!

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’re thinking of selling your property in London, there’s still time to get moving.

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 stellar 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 don’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 to trade-up.

Give our office a call on 0203 441 1571 or email info@cribsestates.co.uk if you are considering moving in the London area.