Budget benefits felt across the London property market
Mon 22 Mar 2021
Paul Bennett, Director
By the time you read this article, 2021’s Budget announcement will be old news but the lasting impact on the London property market needs recapping.
Buyers - both those in the midst of a transaction and those hoping to purchase in 2021 – were the recipients of good news. The stamp duty holiday - which was due to end on 31st March 2021 - will now run until 30th June 2021. Staying the same is the maximum £15,000 saving per transaction, with no stamp duty to pay on the first £500,000 of a property’s sold price.
The Chancellor also responded to calls not to end the stamp duty holiday with a ‘cliff edge’ by introducing a phased return to the normal stamp duty rates. Between 1st July and 30th September 2021, the nil stamp duty threshold will halve and there will be no stamp duty to pay on the first £250,000 of a property’s sold price. After then, only the first £125,000 of a property’s value will be stamp-duty free.
There was also good news for those hoping to make the transition from tenant to owner-occupier status, with confirmation of a new range of mortgage for those with small deposits. The new home loans, which come with a Government guarantee, will be open to all buyers who have a 5% deposit – not just first timers. Many of the UK’s largest lenders including Lloyds, NatWest, Barclays, Santander and HSBC will be offering the mortgages from as early as April 2021, and rates can be fixed for as long as five years to provide repayment certainty.
The catch? The property purchase price must not exceed £600,000 for the borrower to qualify and there is no special dispensation for those purchasing in the capital. Buyers, however, need not panic! The Behr & Butchoff online ‘property search’ facility has a £600,000 maximum price filter and a search today reveals a number of apartments for sale below this limit.
Even a budget of £500,000 will buy you a one-bedroom, one-bathroom residence in one of NW8’s handsome mansion blocks. For that price you’ll also get a communal garden, the services of a porter and be within walking distance of St. John’s Wood High Street, Regent’s Park and Lord’s Cricket Ground. If you’d like to take advantage of a more modest budget and deposit, please register your details with us as, inevitably, the best value homes are snapped up very quickly. Contact us today and we can add you to our waiting list so you don’t miss out.
So what was in the Budget for sellers? Of course, those looking to make an onwards purchase will enjoy the same benefits as outlined above. Generally, however, anything that stimulates buying levels is a good thing. The Behr & Butchoff team is already noticing an uptick in new buyer registrations and increasing enquiry levels, with offers following as buyers aim to meet the June and subsequently the September stamp duty deadline.
If you have been holding off selling, now is the time to reconsider. The Budget has injected even more momentum into the property market and the window of opportunity has reopened. Talk to us about booking an appraisal of a property you own and start testing the waters today.