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How will Budget 2021 affect the housing market?

How will Budget 2021 affect the housing market?

During the Budget announcement yesterday, the Government revealed another £65 billion worth of spending has been added to the 2021 budget to support the UK as it eases through the Covid restrictions from the past 12 months. In this article, we outline the changes to the property industry and what this will mean for you.

Changes were announced to the Stamp Duty holiday deadline. The good news for those looking to move is that for properties up to £500,000, the deadline has now been extended from the end of March until 30th June 2021. After this date, this will reduce to properties up to £250,000.00, before returning to £125,000.00 from the end of September 2021. This will be welcomed news for anyone currently involved in a transaction and will no doubt see a flood of Spring optimism flourishing into life for the next few months. 

At Dutton Gregory, we are pleased to announce that our “If we don’t make the day, you don’t have to pay” pledge will be extended now until 30 June 2021, as a result of the Stamp Duty holiday extension. Click here to find out more about this pledge.

On top of the Stamp Duty holiday, a new mortgage guarantee scheme will be introduced in April this year at 95% for first time buyers, with properties valued up to £600,000.

Rightmove confirmed yesterday that within half an hour of the announcement, the use of their mortgage calculator jumped by 85% with overall traffic to Rightmove jumping by 16%, which may indicate the news has been taken very well in the housing market. Dan Szasz Dutton Gregory’s Property Agency Business Consultant commented:

“So many home movers over the past year have had challenges to raise a 15% or 20% deposit, with a number saying they had to put their plans on hold. This availability of 95% deposits will really help the market. It could help some buyers bring their plans forward, especially if they managed to save more than they were expecting to while in the various lockdowns. It’s also a helping hand to people who have been struggling to upsize because of the much bigger deposit needed. 95% mortgages have already created traction in the market according to some of our financial advisors. The staggered approach with easing us back in to the normal SDLT is a sensible plan by Rishi and we would hope this allows clients to plan their transactions in a timely manner for completion before the cut off.”

For more information on the 95% mortgage guarantee scheme, see the Gov.uk website.

Paul Sams, Partner and Head of Property, stated:

“The Stamp Duty news, coupled with the Government’s backing of the new mortgage products about to be introduced at 95%, is likely to be welcomed news for all first time buyers and the rest of the market as that releases a new wave of buyers looking to take their first steps on the property ladder.”

If you are in need of legal advice, our team of experienced and expert solicitors are on hand. Contact us today:

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