What did the 2021 Budget have to say about housing?

1st April 2021

Rishi Sunak stood up on Wednesday 3 March to give his highly anticipated Budget speech to the House of Commons. While other coronavirus support measures were first on the agenda, the Chancellor’s speech also revealed some important housing measures.

Extension of Stamp Duty holiday

The Chancellor announced a three-month extension of the temporary £500,000 nil rate band for Stamp Duty Land Tax (SDLT) to 30 June 2021, followed by an interim £250,000 SDLT threshold for a further three months to 30 September. The government has been under intense pressure from the property sector to extend the tax break due to severe delays in the transaction process (a result of the huge demand caused by Mr Sunak’s original announcement in July), which have left many buyers at risk of missing the original 31 March deadline through no fault of their own. The regular £125,000 SDLT threshold will return from 1 October 2021. In Wales, the Land Transaction Tax (LTT) temporary tax reduction has been extended to 30 June 2021

Guarantee on 95% mortgages

Mr Sunak announced a new government guarantee on 95% LTV loans, to give lenders the confidence to offer loan finance to homebuyers with a 5% deposit. While small deposits are a hallmark of first-time buyers, the scheme is not limited to this group; nor is it restricted to new build properties and is available to all borrowers on properties up to the value of £600,000. Commencing in April 2021, the scheme will be available for all new mortgages up until 31 December 2022.

Ask the experts

Whether you’re looking to get your transaction over the line by the new Stamp Duty holiday deadline or are interested in the new guarantee on 95% LTV mortgages, we’re here to advise you. We can guide you through your options and find a mortgage that suits your circumstances.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Information within this article is based on our current understanding of the budget and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details.

We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.