Local estate agency Burchell Edwards welcomes the recent announcements featured in the Government's spring budget, where Chancellor Rishi Sunak set out some important new plans for the housing industry, including changes to Stamp Duty Land Tax and mortgages.
As of July 2020, the stamp duty threshold - the level at which home buyers start paying the tax - was raised from £125,000 to £500,000, meaning no Stamp Duty Land Tax (SDLT) is paid on all house purchases under £500,000. This has cut the average stamp duty bill by £4,500, with nearly nine in 10 homebuyers set to pay none at all. Due to the success of this initiative, the holiday has now been extended from 31st March to 30th June, with a tapering for house purchases under £250,000. At the end of September 2021 this will return to the original threshold of £125,000 and under only.
The Chancellor has also confirmed that there will be government-guaranteed 95% mortgage loans available from April, on the purchase of properties up to the value of £600,000, for first-time buyers, and existing homeowners. This means that homebuyers who can only afford a 5% deposit will not be turned away by lenders, as they previously have been in the last year.
“The SDLT holiday extension and government-guaranteed 95% mortgage loans will be of great assistance to the housing market and home movers, who may otherwise have felt priced out of the market or faced delays in their transaction,” says David Plumtree, Group Estate Agency Chief Executive. “Both initiatives will certainly be a boost to market activity, as well as buyer confidence, and are fantastic news for first-time buyers and existing homeowners alike. Our team of advisors are here to help as many customers as possible to benefit from these amazing opportunities, so please do get in touch.”
To find out more about SDLT, mortgages and the local market, or to arrange a free market appraisal on your home, please contact your local Burchell Edwards branch.
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