With the March Budget looming, people with interest in the UK housing market are waiting to see what will be introduced. The resignation of Sajid Javid threatened to delay the Budget, but it is still going ahead as scheduled. The new Chancellor of the Exchequer Rishi Sunak is being called on to introduce new measures which will help people buy and sell homes.
Will There Be Changes To Stamp Duty?
The Conservative Party manifesto stated they would increase stamp duty tax for buyers who aren’t resident in the country. The thinking behind this move is that it will reduce the number of foreign buyers, which will hopefully help local people step on the property ladder.
However, there are rumours that there may be more stamp duty changes to come. Prime Minister Boris Johnson said in his leadership campaign that he would consider increasing the stamp duty threshold. There has been some talk the new limit could be £500,000.
While stamp duty has already been altered to provide more leeway for first-time buyers; a change of this scale would make buying property more affordable for many people. With recent studies indicating many people looking to downsize are hesitant to do so because of the cost of stamp duty, this change could create more freedom and movement in the property market.
This type of stamp duty change would also be positive for landlords looking to increase their property portfolio. While these property buyers face an additional stamp duty charge of 3% for purchasing a “second home”, if the primary stamp duty was removed, the cost of property investment would be lower for many people.
Will the First Homes Scheme be introduced?
There is no denying that more needs to be done to help people step on to the property ladder. The First Homes scheme has been introduced by the Government, but there is hope further information and guidance will be issued during the Budget.
The Housing Secretary Rt Hon Robert Jenrick MP spoke about the scheme, saying; “A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership. The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”
He continued by saying; “The average price of a newly-built home in England is £314,000. Under First Homes, a property sold with 30% off this price would deliver a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit.”
In theory, the First Homes scheme looks of benefit, and of course, if buyers are more confident about stepping on the property ladder, vendors will also welcome this measure.
If you are looking for help in selling your property, it is best to speak to property professionals. For a chat or discussion on your options, contact your local Thomas Morris branch, and we’ll be delighted to offer guidance. If you are looking to sell your home, book a valuation at a time that is suitable to you.