16 Mar The Budget 2021
So, now that the attention and hype surrounding the 2021 Budget Statement has died down and the Oprah Interview has taken place; we wanted to take a second to look at some of the highlights which are likely to have a positive impact on the property market.
The last 12 months have been a difficult time for everyone and as the vaccine rolls out and lockdown restrictions are eased, we are starting to see some light at the end of the tunnel. Hopefully by the summer, the UK will have been vaccinated and be able to return to some kind of normal.
We have had a busy 10 months since we reopened during lockdown 1.0. We have been inundated with enquiries for properties so, if you are thinking of making your move, we are always adding to our amazing catalogue of properties for sale in Virginia Water and the surrounding areas so, visit our award-winning website or call us on 01344 843000 and email us.
The Budget Statement
The Annual Budget Statement is the Government’s opportunity to announce changes in taxation and give an update on the state of the economy. Delivered by the Chancellor of the Exchequer, Rishi Sunak at the beginning of the month, we were delighted to hear about some of the Government’s plans to support the property market as we all look to help the economy recover after a tumultuous 12 months.
Along with a freeze on alcohol duty and income tax, the statement outlined how the furlough scheme will be extended for another three months and that one more Self-Employment Income Support grant will be paid in April, meaning that those not previously eligible will now be able to apply.
Stamp Duty Holiday
In July last year (2020) the Government announced the Stamp Duty Holiday, which mean that buyers could save up to £15,000 on their transaction. The 0% stamp duty threshold is now £500,000 and the holiday was initially due to end on the 31st March 2021. The latest budget statement contained details of an extension, meaning that the holiday will now end on the 30th June 2021; with a transition period until the end of September where the threshold will reduce to £250,000 before returning to the normal rate on October 1st.
As a result of this extension those people who have experienced delays due to the strain on the property industry can breathe easy that their transaction will complete in time for them to benefit from the savings. We are also likely to see one final push as people make late decisions to move home before the end of the scheme.
We’re looking forward to a busy few months as we emerge from lockdown restrictions and set about returning to normal.
As part of the Government’s continuing support for the property market they announced in the Spring budget that they will be running a new 95% mortgage guarantee scheme. The scheme will encourage lenders to provide high loan to value mortgage products to creditworthy borrowers with only 5% deposits, the government will compensate the mortgage lender for a portion of the net losses suffered in the event of repossession. This means that borrowers will be able to access 95% mortgage products providing they pass the necessary affordability checks.
The scheme is available to all home buyers from April 2021 on properties worth up to £600,000. Major lenders including Barclays, HSBC, NatWest and Santander have agreed to participate from April, with more, likely to join soon after.
Get in Touch
If you are thinking of moving to the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram and LinkedIn.