The Chancellor has set out the 2021 budget and here we look at what it means for the property market.
Earlier today, Rishi Sunak set out one of the most significant budgets in recent times. It has been highly anticipated by the wider public and the property market alike. Here we are going to have a look at the most significant announcements…
Stamp Duty Extension
As predicted by many property experts, the stamp duty holiday has been extended for a further three months. This is great news for anyone with a sale still going through and for anyone looking to come to the market. There are more buyers currently than properties for sale and with this announcement, anyone who was waiting for the official announcement may move their plans forward. So expect an influx of properties to come to the market over the next month.
Sunak also announced the return of 95% mortgages. This means that buyers will only need a 5% mortgage now, depending on their credit ratings etc, still. This is great news for those looking to take advantage of the stamp duty holiday, but who didn't quite have enough for a deposit. The Government hopes that by underwriting these 5% deposits that more people will be able to become homeowners and as such step away from 'Generation Rent.' Interestingly, the 5% deposit mortgages aren't just open to first-time buyers.
Overall, when it comes to the effects on the property market from today's budget, the news is positive. In his budget speech, the Chancellor said that "several of the country's largest lenders including Lloyds, Natwest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month."
So, buyers will have the security of knowing that the mortgages on offer are from some of the most well-respected banks and building societies and, combined with the extension of the stamp duty holiday, expect the property market to boom into life this Spring.