Chancellor Rishi Sunak confirmed the extension of the stamp duty land tax (SDLT) holiday in Budget 2021.
The government will extend the “temporary increase to the SDLT zero-rate band” for residential property in England and Northern Ireland to 30 June 2021.
The zero-rate band will be £250,000 from 1 July 2021 until 30 September 2021. However, from 1 October 2021, this threshold will return to the standard amount of £125,000.
After the Chancellor’s announcement, the Welsh Finance Minister has also confirmed the extension of the “Land Transaction Tax (LTT) temporary reduction period” for a further three months. Thus it will end on 30 June 2021.
Mr Sunak also announced a new mortgage guarantee scheme. The scheme will enable homebuyers to secure a mortgage of up to £600,000 with a 5% deposit.
This scheme will provide a guarantee to lenders across the UK who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000.
The scheme gives an opportunity to all buyers to fix their initial mortgage rate for at least five years if they wish to.
David Postings, Chief Executive of UK Finance, said:
‘We welcome the certainty an extension to the stamp duty holiday and a phased approach to its ending brings for buyers and sellers. This will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.’
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