Property And The Budget
Chancellor Phillip Hammond released his latest budget on 28th October, and it held some interesting news for those looking to buy or sell a property in the not too distant future. The Good Estate Agent has put together some of the most important points for you to see at a glance what has been done for the property market.
Help To Buy
Help To Buy is a government backed scheme that allows first time buyers to purchase a property with just a 5 percent deposit rather than the usual 10 percent. The government tops up the deposit to the required amount (to a maximum of 20 percent), giving those who find it difficult to save for a deposit, or who have no current property’s equity to use, the same chance as everyone else to secure a home.
The budget confirmed that this scheme would be extended for an additional two years, and therefore won’t end until 2023. There will, however, be a cap on the price of the home that can be bought under the scheme as of 2021, and this cap will depend on where the property is. In London the price will be £600,000, whereas in the North East it will be £186,100.
Stamp Duty Relief for Shared Ownership
Stamp duty can be a big burden to bear and in some cases it can be the reason why someone is unable to buy a property. The budget has determined that there will be stamp duty relief on properties that fall under the shared ownership scheme, up to a price of £500,000. On top of that, this ideas has been backdated, meaning that if you bought under this scheme since November 2017, you will be due for a rebate on your stamp duty.
Additional New Homes
Phillip Hammond has also pledged an extra £500 million to go into the Housing Infrastructure Fund. This will enable another 650,000 new homes to be built across the UK. The more homes there are, the more people will be able to buy them.
If you feel ready to buy your first house, we can help you. Get in touch for advice and information today.