Episode 2 -2021 Stamp duty

What is the stamp duty holiday?

Last summer, the government temporarily increased the amount at which stamp duty is paid to £500,000, for property sales in England and Northern Ireland.

The tax break was due to end on 31 March, but Mr Sunak announced in the Budget that it will now end on 30 June.

After this date, the starting rate of stamp duty will be £250,000 until the end of September. Stamp duty will then return to the usual level of £125,000.

The move was aimed at helping buyers who might have taken a financial hit because of Covid. It could save them as much as £15,000, if they were buying a property of £500,000 or more.

It was also intended to boost a property market hit by lockdown, which had seen house prices fall for four months in a row.

 

What other help for homeowners is there?

The chancellor also announced a new “mortgage guarantee” in the Budget.

Starting in April, the government will provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000.

The government says the scheme will allow more people to become homeowners.

Lloyds, NatWest, Santander, Barclays and HSBC will be offering 95% mortgages from April, with other lenders including Virgin Money expected to launch products later.

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