After lots of pre-budget speculation, the Chancellor has now announced some important factors affecting the housing market.
The first being confirmation that the current stamp duty holiday that was due to end on 31st March 2021 will now be extended until the end of June, along with an additional extension of the stamp duty holiday until 30th September 2021 for purchases of residential properties up to £250,000.
Furthermore, the Chancellor has announced a “government guarantee” scheme on 95% mortgages. The main aim being to help more first time buyers onto the housing ladder, moving away from ‘generation renters’ and bolstering the housing market.
What does that mean for local home movers – YOU?
Prior to the stamp duty extension announcement, there were fears that many buyers and sellers would fail to complete by the 31st March with hundreds of thousands of home buyer transactions being stuck in a backlog as solicitors, surveyors and lenders struggled to keep up with the increased demand whilst working from home and throughout a succession of lockdowns.
The Chancellor’s decision to extend the stamp duty holiday until the end of June will come as a great relief to those with existing sales and purchases agreed and is exciting news for those who thought they had missed the boat.
The pandemic led to a dramatic fall in the number of high loan to value mortgages, with low deposits being a thing of the past and mortgages being withdrawn for those who were furloughed. Under the new scheme, which will launch across the UK in April – the government will offer to take on some of this risk to help home movers buying properties up to £600,000 and in particular more first time buyers to get on to the housing ladder. Unlike the ‘Help to Buy’ scheme, this will not be limited to new build homes and first time buyers. The government have said they will offer incentives to lenders, aiming to bring back 95% mortgages. This is already being backed by some of the UK’s largest mortgage lenders.
The Chancellors intention is clearly to continue to stimulate the housing market as we emerge from the pandemic.
We believe these schemes offer a life line to those wishing to move out of long term rentals into property ownership. Thus creating ongoing demand particularly for properties in the £250,000 price bracket. The knock on effect of first time buyers in the marketplace creates demand for higher priced homes too as sellers look to upsize to their next home. So it’s good news for everyone who is looking to move.
That being said, there is currently a shortage of fresh properties coming to the market locally and we are experiencing a high demand which we believe will continue to increase over the spring and summer period.
If you are considering a move, call us on 01243 861344. Our expert valuers have all the latest data at their finger tips to make sure you achieve the right price for your home and make a successful move.
If you have any questions about how the budget may affect your home move, we will be delighted to help.