Rishi Sunak has delivered his budget statement to Parliament for 2021. The Chancellor confirmed that the stamp duty holiday on properties priced up to £500,000 has been extended by three months, until 30th June 2021.
The stamp duty holiday continues to apply to properties priced up to £250,000 until the end of September 2021. Buyers can save up to £2,500 in tax on purchases completed during this period.
The extension provides extra time for buyers who were unlikely to complete their transactions before the original 31st March deadline. From October 1st, the nil rate band will fall back to its original level of £125,000.
The Chancellor has also confirmed a new scheme to help first time buyers. The scheme allows for a 5% deposit on house purchases with a Government guarantee.
Mortgages of up to 95% for residential purchases of up to £600,000 will be available from next month. This policy aims to provide people who do not have a large deposit a chance to buy their own home.