2021 Spring Budget reveals a focus on homes and housing
9 March 2021 • Products & Services • Corporate
The Cambridge Building Society is delighted to welcome the confirmation that an extension to the Stamp Duty holiday has been agreed, this comes as the 2021 Spring Budget revealed a focus on homes and housing.
Tracy Simpson, Head of Lending at The Cambridge adds, “We welcome the announcement to the extension of the Stamp Duty holiday from 31st March to 30th June. As a result of the sheer volume of transactions people purchasing homes during this time have experienced severe delays, and it would have been incredibly unfair for them to be penalised or potentially lose their future home due to the cut off. Whilst the announcement is welcome the revised hard end date could see similar challenges for some at the end of June.
The tapering of Stamp Duty based on home value will continue to help purchasers through to 2022. However, house prices in our East Anglian region will no doubt remain high and therefore many buyers will need to factor in paying Stamp Duty from July onwards.
Prior to July 2020 98% of people purchasing a home in East Anglia paid Stamp Duty, the introduction of the Stamp Duty holiday has resulted in a reduction to 19%*, these figures highlight the vast proportion of people local to us who’ve been able to benefit from this change.
We know the Stamp Duty holiday has worked really well, providing a huge kick-start to the housing marketing when introduced back in July 2020. This is positive and will allow the market to remain buoyant, support people to continue with their purchases and avoid chains collapsing.
The 95% Mortgage Guarantee sounds positive for First Time Buyers and existing homeowners struggling to save more than a 5% deposit. At The Cambridge we’ve focused for many years in supporting people buy homes with a low deposit.
This renewed market wide focus alongside a sensible, personal approach to underwriting could support the next generation into home ownership and those looking to move up the property ladder. We haven’t yet got sight of the Government Guarantee and will review the detail as it becomes available”.
For more information contact the team today.
* Source: Halifax, 6mth rolling to June, Dec 2020