What did Rishi say to bring a smile to our faces?
2021 Budget statement, Village Properties
The scene was set, we had heard the rumblings of a couple of positive announcements for the property industry and we were all tuned in to hear what the chancellor, Rishi Sunak, had to say. There was good news on the economy, which is expected to recover more sustainably and swiftly than expected, according to the Office for Budget Responsibility. After the doom and gloom of the past year, this positive outlook for the future can only put a little spring of confidence back in all our steps. But what about property?
Sunshine on the Stamp Duty holiday
The first of the property announcements was with regard to the Stamp Duty holiday. As an industry, we have been calling for the chancellor to re-think the planned end to the holiday on 31 March, as so many people in the process of buying were set to miss this deadline. In fact, according to figures published by Rightmove in their January House Price Index, a mammoth 613,000 sold subject to contract properties were still awaiting legal completion.
This is a staggering figure but, more importantly, it is people’s lives and futures, the added cost and financial pressure of having to pay Stamp Duty tax that you didn’t expect would have seen many sales fall through. Which is why Rishi’s extension of this stamp duty holiday is a ray of sunshine that will bring an abundance of smiles across Reading.
Now, instead of the holiday ending on 31 March, it has been extended until 30 June, after which point the nil rate band will be REDUCED to £250,000, only returning to normal on 1 October. We can see you rushing to place your home on the market now, and we will be ready to make that happen.
A wish come true for first-time buyers
“We want to change generation rent to generation buy,” Boris Johnson once said, and the chancellor’s next announcement aims to make that happen. One of the biggest problems that first-time buyers face is raising the huge deposit required to buy a new home. We love helping first-time buyers at Village Properties; the excitement and that overwhelming feeling of finally getting the keys to the first home you’ll ever own, can never be forgotten and we get to play a small part in it.
“Even with the Stamp Duty cut, there is still a significant barrier to people getting on the property ladder – the cost of a deposit. So I’m announcing today a new policy to stand behind homebuyers: a Mortgage Guarantee,” stated Rishi Sunak.
In the Budget, he stated that several big lenders had already signed up to the scheme with others expected to follow. If you are looking to buy a home and can only afford a 5% deposit, you will benefit from a government guarantee on your mortgage. More details of the nitty gritty will follow, and we suggest that you speak to your mortgage broker in the coming days to find out all the details and eligibility criteria of the guarantee, which will be available from next month.
Can you take even more good news?
What, there’s more? This doesn’t come from the chancellor, but we have been looking at what’s been happening in the local market. The surge in the number of buyers seeking to find a new home in the area has had an impact on the house prices in Reading. According to figu
We anticipate that, with today’s announcements, confidence in the property market will continue to rise. Add to this the kids going back to school (no more home schooling – cheers from our office!), the vaccine roll out (where, as of yesterday at 4pm, 20,478,619 people had received their first dose, according to Gov.uk) and the roadmap to recovery, the future does look bright.
We are certain that you will have many questions regarding the Budget announcement and also how the local market affects your home’s value. Please just give us a call, we are here to help.