Rishi Sunak stood before the House of Commons on 3 March to deliver his second Budget. Of particular interest are the two major housing measures revealed in his speech.

Stamp Duty holiday extension

Many buyers breathed a sigh of relief at the Chancellor’s announcement that he would be extending the Stamp Duty holiday until 30 June. This means that the £500,000 temporary threshold at which Stamp Duty begins to apply will be in place for another three months, before tapering down to £250,000 for a further three months. The usual £125,000 nil rate threshold will resume from 1 October 2021. By using this phased approach, the government is hoping to avoid another ‘cliff edge’ scenario where tens of thousands of buyers face a missed deadline – and a hefty tax bill.

New mortgage guarantee

Secondly, Mr Sunak introduced a new mortgage guarantee for buyers with a 5% deposit, on properties valued up to £600,000. Essentially, the government will provide lenders with a guarantee, giving them more confidence to offer the highest value (95%) mortgages to buyers with a smaller deposit. While this group is largely composed of first-time buyers, the scheme isn’t limited to those purchasing their first property, or indeed to new build properties. It will be available on all new mortgages up until 31 December 2022.

Talk to us

If either of these measures have spurred you into considering your own house purchase, please get in touch with us and we can discuss your options and find the most suitable mortgage for your circumstances.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.