Budgeting for success

Budgeting for success

09 March 2021

Hi again everyone,

I hope you are all keeping well.

A month seems like a very long time these days and this one has been particularly eventful.

It’s fair to say the Chancellor, Rishi Sunak, had an unenviable task on his hands on 3rd March 2021 when he delivered this year's budget.  With help needed to protect jobs and businesses impacted by the pandemic but also with a need to provide a set of measures to rejuvenate the beleaguered economy. 

In terms of the housing market, there were two really significant announcements.

Stamp Duty Holiday

The temporary £500,000 exempt rate band for Stamp Duty won’t end on 31st March, which comes as a huge relief to many of our customers currently involved in sales, trying to make the original deadline of 31st March.

The great news is this has now been extended to 30th June 2021. There is some additional good news to smooth the transition back to more normal times, the zero rate band will set at £250,000 (double it’s usual level) until the end of September 2021, so if you are looking in that price band, there is still time to take advantage and make some good savings. 

5% Mortgages

Another huge announcement was the assistance for First Time Buyers and current homeowners as assistance is being put in place to secure Government guaranteed mortgages 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 with the intention to turn “generation rent” into “generation buy”.

Over the last year, lenders have been insisting on larger and larger deposits, with 95% mortgages largely disappearing.

As Lockdown restrictions gradually begin to ease, there is a good deal of optimism in the air. With these measures introduced by the Chancellor to boost the economy, the vaccine rolling out at a great pace and lighter evenings, we can all look forward to more positive times ahead.

Kind regards,
David Lench
Group Managing Director