Mike Scott, Chief Analyst as estate agency Yopa reacts to the extension of the stamp duty holiday:
“We welcome news of the stamp duty extension, which should allow property purchases that have already been agreed to go forward without those in the chain having to worry about missing the deadline (and missing out on a saving of thousands of pounds).
“The extension of the holiday to 30th June followed by a higher tax threshold until 30th September is long enough that new buyers may take up this opportunity in the hope of beating the new June deadline and saving up to £15,000, or at least saving up to £2,500 by completing before the end of September, which is great news for the property market and wider UK economy. However, the Government should consider the additional load this will place on the conveyancing industry, which may even prevent some of the existing purchases from completing by the new deadline despite the extra time, frustrating home buyers who have been ready to go for some time. We would like to see a measure in place to ensure that those sales that were already in progress before this extension was announced will be prioritised.”
Neil Weston, Principal of Scout Financial Services, reacts to the mortgage lender support (95% mortgages):“We are thrilled to see Government support for first time buyers included in the Chancellor’s Budget today. We have been calling for greater support for mortgage lenders in this space for a while now and action on this was promised by the PM back in October, so it’s great to finally see a plan in place.
“Whilst the availability of mortgages for 90% of the purchase price has improved recently, the market has remained restricted by tight lending criteria and the lack of high loan-to-value mortgages. More support for lenders to lend a higher percentage of the purchase price will no doubt be welcomed across the industry and by first time buyers. However, many first time buyers may find themselves in a tricky position where they will now have enough money saved for a deposit, but they are unable to secure a mortgage as a result of being furloughed. Recent Treasury figures indicate a total of 4.7 million Brits remain furloughed, many of whom are would-be first time buyers in sectors such as retail, travel and hospitality.
“Furloughed workers looking to buy a home face far fewer mortgage options, with many lenders refusing to consider furloughed income at all. This announcement from the Chancellor today does little to alleviate that; if anything, the extension of the furlough scheme will only exacerbate the problem. If you’re furloughed and unsure about mortgage availability, it might be worth speaking with a whole-of-market mortgage broker, who will be able to explain your options.”
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