Yesterday, Rishi Sunak released the 2021 budget and whilst it’s reception was mixed, there were a few pleasant surprises in there for the housing market and those of us looking to buy our next home.
Firstly, he confirmed that we are to see an extension to the stamp duty holiday from the end of March to June. For those rushing to get their purchase completed before the original March deadline, the pressure has been somewhat lessened by this confirmation. It’s also safe to say that we’ll see a continuation of the people looking to take advantage of this reprieve which will help to keep the market moving whilst we move toward the light at the end of the COVID tunnel.
Secondly, we are going to see a new mortgage guarantee scheme to help buyer purchase homes with a deposit of 5%. This will mean banks are more inclined to lend to those that have been caught out by the deposit trap. We would expect many first time buyers as well as those that have had their plans disrupted by recent events make their way on to the ladder as it becomes more accessible to them.
All in all, this budget is good news for the UK’s housing market as it tries remain buoyant and seems to highlight just how important it is to our economy.