Not only has the Stamp Duty been extended but there is also help for all those budding homeowners who have been struggling to scrape a massive 10%, or higher, deposit together to enable them to buy their first home.
Here are the key headlines for the latest Stamp Duty Extension news…
- The stamp duty holiday on purchase prices up to £500,000 has been extended until 30 June 2021.
- The relief is then reduced to purchase prices up to £250,000 which will be in place until 30 September 2021.
- From 1st October 2021, the stamp duty will revert to the original £125,000
The Stamp Duty Extension will ensure that there is sufficient time for buyers to complete their transactions without feeling under pressure and will give solicitors a little breathing space too.
There is also a helping hand for first-time homebuyers.
From 1st April 2021 banks will be offering 95% mortgages which will be supported by a government-backed guarantee. This means only a 5% deposit will be required and furthermore, this is not limited to first time buyers or new build homes only as the eligibility criteria allows for current homeowners too. There is however a limit of up to £600,000
This offer does not appear to be available to Buy to Let investments.
Enabling first-time buyers to get their foot on the property ladder will bring new nourishment that will benefit the wider housing market as a result. Although this is a welcome outcome to the challenging last 12 months we must remain mindful that this potential surge in demand may lead to over-inflated house prices.
For any questions please contact our experienced conveyancing team at Gregory Abrams Davidson Solicitors on 0151 236 5000 or fill out our online enquiry form to get in touch.
