Greg Wilson, founder of Quotezone.co.uk, says “Homeowners across the country are likely to be pleased to learn that the stamp duty holiday is to be extended, particularly given the speculation before the Budget that any extension might only apply to property transactions that were already in progress by the 31st March deadline.
“Of course, there’s always the risk that this extension might encourage more property sales to be brought forward, with a significant slump in property transactions after the stamp duty holiday ends.
“Whether or not that decline in demand results in a drop in property prices is difficult to predict at this stage, but there is the possibility that the newly introduced 95% mortgage guarantee scheme could help shore up prices.
“While the new government-backed scheme will be very welcome news for first-time buyers, since it will help reinstate the 95% loan-to-value mortgages that all but disappeared during the pandemic, it would be remiss of us not to point out to these buyers that they will need to insure their properties from the moment they exchange contracts on their new home. While home insurance isn’t a legal requirement in the UK, it is usually a contractual obligation in any mortgage agreement, which means homeowners would be breaching the terms of their mortgage if they failed to take out a suitable policy.”
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