Keep The Home Fires Burning
In his spring 2021 Budget the Chancellor of the Exchequer, Rishi Sunak has chosen to keep the fire under the property market well and truly alight.
The UK is now experiencing a property buying demand reminiscent of a 1970s or 1980s boom. We know there is a property boom when adverse events that might otherwise have affected the market fail to do so. Lockdowns 2 & 3, the prospect of the stamp duty holiday ending and the fear of post furlough increase in unemployment have had no impact on enthusiasm for property purchase.
In the Budget the Chancellor has extended the stamp duty holiday from the end of March to the end of June - there will be a Stamp Duty holiday on properties up to £500,000 until the end of June, and then a holiday on properties up to £250,000 until the end of September. The Budget announcement includes a mortgage guarantee scheme which offers incentives to lenders to provide 95% mortgages, in turn helping those with small deposits to step onto the property ladder; an extension to furlough and a rejection of an increase in capital gains tax which could otherwise have dented the holiday home and investment sectors. All of these moves are providing fuel to a property market which is expected to be vibrant through 2021.
As we wake up from the Covid nightmare, the sensational roll out of Covid vaccinations and the gradual easing of lockdown many people are finding work between office and home possible. The British public is still enamoured with home ownership, and the Chancellor has chosen to stoke the embers again.