The annual Chancellors budget took place this week and there were as always plenty of talking points. Mr Hammond’s budget covered such topics as taxation, wages, alcohol/tobacco, public finances, pensions, education, transport and much more.
One of the main points of topic from the budget was property and housing, so we are going to look at some of the key initiatives surrounding that, beginning with…
Stamp Duty Changes for First Time Buyers
Stamp Duty will be totally abolished for all first time buyers on purchases up to &300,000, which is estimated that 95% of all first time buyers will benefit from this. Stamp Duty relief will also be available for any first time buyers looking at more expensive properties, so relief will be available on the first &300,000 for any property purchases up to the cost of &500,000, with the remaining &200,000 incurring 5%. This change/reduction will apply immediately in England from the time the budget was announced.
Pledge to Build 300,000 New Homes a Year by 2025
The government has pledged to build 300,000 new homes ever year on average by the year 2025, which would provide the highest annual increase in housing supply since 1970. The budget outlined building programmes that focus mainly on more urban areas where people want to live and where in turn the more jobs are created. They say that the aim is to build quality, high density homes primarily in city centres and around major transport hubs.
Help to Buy Scheme Extension
Last month, the Priminster promised an extra &10 billion to extend the Help to Buy scheme until 2021 and this with confirmed in this years budget. With the Help to Buy Loan scheme, the government lends you up to 20% of the cost of a newly built home, which means you’ll only need a 5% cash deposit, along with a 75% mortgage to make up the rest. Further more you won’t be charged any loan fees on the 20% loan for the first 5 years!
To find out more about new homes please visit http://www.ryder-dutton.co.uk/pages/new-homes or contact us with any questions you might have!