Stamp Duty Holiday extension announced

Last week many finally received the news they were hoping for from the Chancellor’s Spring Budget – an extension to the temporary cut in Stamp Duty until September.

Transition to the end of September

Until 30 June 2021, purchasers who are buying for their main residence will not pay any stamp duty on a home valued up to £500,000. After this date, there will be a transition period until the end of September where the nil rate threshold will drop to property values of up to £250,000. Then, on 1 October 2021 it will return to the usual threshold of £125,000.

This news will be welcomed by many who have been racing to buy or sell their home before the original deadline of 31 March.

It is estimated that 628,000 sales are in process with some having started the process last year, so this extension will be a relief to all of those hoping to keep hold of those savings.

James Epps, Director at Oakley adds “The news of the extension is a welcome relief as it was creating additional stress and pressure for everyone involved in the process, especially purchasers & sellers. The phasing of the stamp duty relief means that it is still not too late for people wishing to take advantage of the government’s incentives.” 

5% mortgage guarantee

On top of this extension, the government has introduced a new mortgage guarantee scheme, enabling all UK homebuyers to secure a mortgage on a property up to the value of £600,000 with just a 5% deposit. This is not restricted to only first-time buyers or new-build properties.

The chancellor said that from next month, a large number of High Street lenders such as Santander, Lloyds, NatWest, HSBC and Barclays, will start offering 95% mortgages.

We’re here to help

If this news has encouraged you to look at selling or buying, we can help talk you through the advantages and offer marketing advice. We’ll be pleased to offer you a free valuation to get your property on the market during this particularly busy period.