3 March 2021

BUDGET 2021: Stamp Duty cut and a new scheme for first time buyers

By Jim Pallister, Property Director, Hayes + Storr.

Rishi Sunak announced in today’s budget that the stamp duty cut will be extended for a further three months. Meaning that those buying a property as their main home (who do not own other property) for under £500,000 won’t have to pay stamp duty on matters that complete before the 30th June 2021.

Then, to ease the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September, returning to the usual level of £125,000 from October 1st.

Anyone purchasing additional properties worth over £40,000 will still have to pay an extra 3% in Stamp Duty on top of the revised rates for each band.

Additionally, in a further boost to the property market, Sunak announced a ‘mortgage guarantee’ for lenders who provide 95% mortgages to homebuyers who can only afford a 5% deposit.

In recent months, a combination of the tax break and lockdown restrictions have led to a boom in property transactions and prices, with official figures showing prices climbed by 8.5% in 2020.

This article is for general information only and does not constitute legal or professional advice.

For information on buying or selling a property, call Hayes + Storr on 01263 712835 and ask to speak to someone in the property department.