What was in the budget for Local home buyers?
Budget 2021 statement, Clarke Gammon
It has been a much-anticipated budget. The chancellor began his speech with some good news on the economy: “The OBR (Office of Budget Responsibility) forecast that our economy will grow this year by 4%, by 7.3% in 2022, then 1.7%, 1.6% and 1.7% in the last three years of the forecast.” This is a swifter and more sustainable recovery than was initially expected, and will be music to the ears of our glorious high streets who are eager to open their doors, and we can’t wait to support them all in the coming months.
But it was the announcements about the property industry that we were especially keen to hear. The press had suspected that there would be an extension to the Stamp Duty holiday and there was speculation about a mortgage guarantee to help first-time buyers, but what actually materialised?
Stamp Duty holiday extended
We know that those buyers in the process of buying and waiting to complete have been extremely anxious, worrying about whether their sale would complete in time for the Stamp Duty holiday deadline. The additional financial burden that would have been incurred if they failed to do so was more than we know many buyers could have coped with on top of everything else we are having to deal with right now.
“The cut in Stamp Duty I announced last summer has helped hundreds of thousands of people buy a home and supported the economy at a critical time. But with the sheer volume of transactions we are seeing, many new purchases won’t complete in time for the end of March.” Said the chancellor.
There was a moment of joy when Rishi Sunak announced that the Stamp Duty holiday, which sets the nil rate band at £500,000, will indeed be extended until 30 June, after which it will be lowered to £250,000 before returning to normal on 1 October. Not only does this give those already in the process of moving some breathing space, it provides an incentive for those hoping to buy a home to do so as soon as possible.
Mortgage Guarantee
Buying any home is tough enough, but buying your first home is an overwhelming challenge that many young people in our community are struggling with, which is why we were pleased to hear the chancellor announce the Mortgage Guarantee. Under this scheme, the government are giving mortgage lenders the guarantee they need to be able to offer 95% mortgages, driven by the government’s desire to change generation rent into generation buy.
This will support a new generation of would-be buyers to realise their dream of purchasers a home. The scheme will increase the number and availability of 95% loan-to-value mortgage products, compared to in January of this year when there were only 8.
Another good reason to relocate
Our figures show us that the number of enquiries from potential buyers living in central London has risen over the last few months. This matches data published by Rightmove, which saw the number of enquiries from London residents looking for a village lifestyle rise by 144%. Due to our location on the commuter belt, we are certainly a hot spot for those still wishing to dip their toe in the capital when needed but also looking for a different style of life.
Due to today’s announcement, we expect to see a growth in the number of properties coming onto the market, giving you much more choice in your search for a new home and a fresh start. If you’re looking to make a move, please contact our team today as properties are moving extremely quickly and, with our help, you can improve your chances of not only finding but securing that dream home you seek.
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