Budget 2021: Implications for the housing market…

Budget 2021: Implications for the housing market…

03 March 2021

2021’s Budget has been the most eagerly anticipated for many years, due to the impact of Covid-19. Chancellor Rishi Sunak has sought to balance the books whilst remaining mindful of kick-starting growth as we emerge from the pandemic.

But what does it mean for the housing market?

Here is our round-up of Budget highlights relevant for the property sector:

  • Stamp Duty Holiday Extension
    The new £500,000 nil rate band for #StampDuty won't end on 31st March, it will end on the 30th June. Then, to smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September. #Budget

  • 5% Mortgage Guarantee
    Looking to assist first-time buyers and current homeowners, you will be able to secure a Government-guaranteed mortgage of up to £600,000 with a deposit of just 5%. This could provide much needed support for those looking to get onto the property ladder.
    The Chancellor said in his Budget, "Several of the country’s largest lenders, including Lloyds, Natwest, Santander, Barclays and HSBC, will be offering these 95% mortgages from next month. Virgin Money will follow shortly after.”

  • Capital Gains Tax
    Capital Gains Tax, which is the tax on the profit of a property sale that’s risen in value, could have hit landlords but, like income tax thresholds, these will all be frozen until 2026, which is fantastic news!