How the 2021 Budget will help one of the best places to live in the UK
Edwards Estate Agents Budget Statement
Only a couple of hours ago, Chancellor Rishi Sunak started to announce his Budget, stating that the government will do “whatever it takes to support British people and businesses.” Amidst all the announcements were two crucial areas for the property industry, which will help many within our local community. These are an extension of the Stamp Duty holiday and also a new policy for those who are struggling to save more than a 5% deposit: a Mortgage Guarantee. Let’s take a closer look.
Stamp Duty
The expected end of the Stamp Duty holiday, 31 March, has been hurtling towards us at great speed, and none have been watching the dates fly by on the calendar so closely than those in the process of buying a home. There is no doubt that the holiday, which saw the nil rate band rise to £500,000, has been a great benefit financially and has seen buyers out in astonishing numbers. The volume of buyers has led to a backlog of completions, with many anxiously praying that their completion date would come before the deadline. The financial cost of failing to do so could have seen many sales falling through.
“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,” explained Rishi Sunak.
This is why he announced today that the Stamp Duty holiday will be extended until the end of June; not only that, from then it will be reduced to a nil rate band of £250,000, before returning to normal on 1 October.
Great news for first-time buyers
We have helped many first-time buyers find their first home, but we know that many do struggle to raise the required deposit. Boris Johnson has previously stated that he “wants to change generation rent to generation buy”, and it is for this reason that the government has announced a Mortgage Guarantee in the Budget today.
With many high street lenders already signed up to the scheme and, according to the Chancellor, many others to follow, as of next month, buyers will be able to take advantage of 95% mortgages. The chancellor stated that, “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.”
Escape to the best place to live, Poole
At Edwards Estates, we know that the whole area we cover within Dorset is special; each little village and town has its own attractions which, of course, as locals we hold onto dearly. Yet it is always great to celebrate when a place is recognised nationally, and it highlights why buyers are continuing to flock to our shores, looking for their own escape to the country or seaside. At the end of last month, The London Economic released their top ten best places to live if you want to escape to the country in 2021.
Their criteria was based on what they described as “several quality of life factors”, such as affordability, accessibility, the range of local amenities and also local countryside being close by. It was wonderful to see that Poole made their top ten, being highlighted as the best for overall lifestyle.
It is a change of lifestyle that many of us are seeking post-Covid, which is why we continue to see no ease up in the number of enquires from buyers eager to find their own escape to a more rural lifestyle. That being said, the number of properties on the market has not been able to meet this demand, and we are hoping that the good news within the Budget today, combined with children returning to school, the vaccine roll out and the roadmap to recovery, will give you the confidence to make that move.
We know there are many couples seeking to downsize but also move closer to family, but the current situation has made them nervous. If you are feeling unsure of whether now is the right time to sell, please talk to our team; we will give you our honest opinion on what is right for you and your property, as every home and situation is different.
Grant Brooks
Edwards Estate Agents MD