“Whatever it takes” to help business and people through the “moment of crisis” caused by the coronavirus pandemic!
Just what is Rishi Sunak promising the property market? We take a closer look at how Mr. Sunak aims to convert ‘generation rent to generation buy’.
Extension of the stamp duty holiday until the end of June
Tax break extended by 3 months - was due to end on 31 March and will now be extended to 30 June
A new 95% Mortgage Guarantee scheme - to enable more people to become homeowners
Rishi Sunak’s budget announcement earlier today bought some much-needed relief to those buying and selling their homes.
The first saving grace came in the form of a government pledge, to provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000. Under the new ‘Mortgage Guarantee’ Scheme, the government will offer incentives to lenders, bringing back the 95 per cent mortgages that have “virtually disappeared” during the pandemic.
Lloyds, NatWest, Santander, Barclays and HSBC will be offering 95% mortgages from April, with other lenders including Virgin Money expected to launch products soon after.
This mortgage guarantee scheme is believed to be similar to the ‘Help to Buy’ scheme of 2016. According to the treasury, this scheme is believed to help revive the market and push house prices up.
The stamp duty holiday has also been extended for a further three months, with the tax being suspended on the first £500,000 of all property sales in England and Northern Ireland since July. This will provide great relief to those buying and selling their homes. The extension means that anyone completing a purchase on their main residence, up to the value of £500,000 before the 30th of June will not pay any stamp duty.
According to Mr. Sunak, he aims to convert “generation rent to generation buy” stating that young people can have a chance to own their own home, making it easier for them to get onto the property ladder.
Find out more below:
When does the stamp duty holiday in England and Northern Ireland end? - BBC News