Today, Rishi Sunak announced that the Stamp Duty holiday has been extended a further three months, until 30 June 2021. The previous deadline was the end of this month, 31 March.
The Chancellor also confirmed that after 30 June 2021, the nil rate band threshold (which, prior to the holiday was set at £125,000) will increase to £250,000.
The extension means that anyone completing on a purchase of their main residence with a purchase price of up to £500,000, who does not otherwise have an interest in any other residential property, will not pay any Stamp Duty, as has been the case since last July when the holiday was brought in. Properties with purchase prices above that amount will pay tax on the value over £500,000.
The 3% SDLT surcharge for additional properties will continue to be payable in respect of the full price, but purchasers of additional properties will continue to benefit from the increased nil rate threshold in respect of the standard tax payable.
The Chancellor also announced a new mortgage guarantee scheme starting in April, which is designed to allow more people to become homeowners. The new scheme states that the government will provide a guarantee to lenders who offer mortgages to buyers with a deposit of 5% on values of up to £600,000. It is understood that Lloyds, NatWest and Barclays are just some of the lenders which will be offering the 95% mortgage come April, however more details to follow.