Stamp Duty Holiday Extension Announced

Spitfire Managing Director, Ben Leather, responds to the extension of the Stamp Duty Holiday.

Chancellor Rishi Sunak has today announced an extension to the Stamp Duty holiday as part of the Spring Budget Statement.

The move will see the existing Stamp Duty holiday extended for property values up to £500,000 until the end of June 2021, with a further extension for the values up to £250,000 until the end of September 2021.

In response to the announcement, Spitfire Bespoke Homes Managing Director, Ben Leather, commented:

“We welcome the Chancellor’s announcement to extend the stamp duty holiday in phases to the end of September. The move will deliver an important confidence boost to the market, providing further stability over the coming months.

“Following its introduction in July 2020, the incentive has acted as a catalyst for the housing market, resulting in a nationwide surge of activity. Today’s announcement will add further comfort for those in the process of buying a home, helping to avoid a hard deadline of the end of March, which would have resulted in buyers having to source up to an additional £15,000 to cover the cost of stamp duty or put their purchase at risk.

“Interest in our homes has remained strong throughout the pandemic. We have seen significant interest from buyers who require premium homes in desirable locations, with prospective buyers seeking an escape to a more rural location or looking for an out-of-city commute to make a permanent lifestyle change, accelerated by the changes in working situation and overall consumer outlook as a result of the pandemic.”

The Chancellor also announced the introduction of a government mortgage guarantee scheme to help facilitate 95% mortgages on property purchases up to £600,000 in value.

Commenting on the Government mortgage guarantee scheme, Ben added:

“The introduction of the government mortgage guarantee scheme is a further measure that will make owning a home more achievable.

“As a Midlands-based business, the mortgage guarantee scheme is especially welcomed, as it will help address the affordability gap left by the revised to Help to Buy scheme regional caps which come into effect next month.

“With a West Midlands Help to Buy regional cap of £255,600 and East Midlands cap of £261,900, wider availability of 95% mortgage products available on properties up to £600,000, as a result of the new mortgage guarantee scheme, will go some way to supporting first time buyers in securing a home.”