Economic Update 8th July 2020
Today (8th July), The Chancellor, Rishi Sunak announced his mini budget which includes some big news for the UK economy especially new mortgage borrowers and home owners as follows:
- Residential Stamp Duty (SDLT) Holiday
There will be a temporary extension of the Nil Rate Band raising the threshold where residential buyers begin to pay stamp duty from £125,000 to £500,000 until 31 March 2021. This is aiming to encourage more people to buy – giving the property market a much needed boost.
More news on the SDLT Holiday and revised bands will be published on the government website > https://www.gov.uk/stamp-duty-land-tax/residential-property-rates.
Essentially, Stamp Duty is a tax paid by people buying properties. How much you pay depends on whether you’re a first time buyer, the location and the price of the property you are buying. First time buyers are already exempt from stamp duty up to £300,000, and pay discounted rates up to £500,000. For everyone else, the levy usually applies after £125,000. The residential property rates for Stamp Duty will now change to start at 5% above £500,000 and up to £925,000. Please visit the Government website to calculate your SDLT and find out more information about second homes and non-residential property.
- Green Homes Grant – Energy Vouchers up to £5,000 for Homeowners & Landlords
Under the Green Homes Grant, the government will pay at least two-thirds of the cost of home improvements that save energy. This is a new scheme where the Government funds home improvements to make a property more energy efficient. For example, if a homeowner installed cavity wall and floor insulation for £4,000, the homeowner would pay £1,320 and the government would contribute £2,680.
The scheme will launch in September, with online applications for recommended energy efficiency measures, and details of accredited local suppliers. Once one of these suppliers has provided a quote and the work is approved, the voucher will be issued. Vouchers of up to £5,000 per household will be available, and up to £10,000 for the poorest households.
Jon Gildea – Partner at Money & Mortgages comments, “Our team have seen lots of action since the housing market reopened and confidence is definitely coming back. With the latest government news, borrowers have got some great opportunities available to them now. This will provide a further boost to market demand”.
At Money & Mortgages, our team are working and available during the coronavirus lockdown and we’re happy to arrange video meetings and phone appointments. For more information please contact us on 0161 505 0601 or via email firstname.lastname@example.org.
Think carefully before securing other debts against your property.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.