Image above: Terraced housing in Chiswick; photograph Anna Kunst
Guest blog by Julian Masson
The March 2021 Budget announcement provided further positivity for the property market, with the Chancellor confirming not only an extension to the Stamp Duty Holiday, but also to roll out a mortgage guarantee scheme for buyers with a smaller deposit.
Buyers, sellers, estate agents, solicitors and mortgage brokers across the country will have breathed a huge sigh of relief at the news of the extension as all involved over the past few months have been frantically trying to conclude and push these transactions over the line before the previous deadline date of the 31st March.
No doubt this news along with the vaccination roll out aiding the easing of lockdown restriction and the improved weather will add further momentum to the upcoming spring market, which has historically always been a busy period.
The Bank of England’s chief economist Andy Haldane stated:
‘a decisive corner has been turned thanks to the Covid-19 vaccine and families are ready to fuel a rapid return to prosperity with a multi-billion pound spending spree of about 250 billion”.
Incentives to lenders to offer mortgages on 5% deposits
The Government has also stated that they will offer lenders incentives which will bring back the prospect of obtaining a mortgage with only a 5% deposit, which had been virtually impossible to find after the Covid-19 outbreak.
It is important to note that the new mortgage guarantee scheme will not be restricted to first-time buyers or new-build homes but there will be a limit on the scheme up to £600,000.
Although the average property price in Chiswick is much higher than £600,000, any boost in the chain of buyers will help the rest of the property market and this scheme will certainly help flat sales start to move, which over the past few months had been noticeably struggling in comparison to house sales.
In Chiswick, we had noticed a surge in buyer registrations and offers received since the news had leaked regarding the Stamp Duty extension. We are very encouraged by the news and have no doubt this fresh activity will continue over the upcoming months.
The shift and movement of buyers relocating from more central locations of London for additional internal and external space continues and we look forward to a busy spring period.
Julian Masson is branch manager for John D Wood & Co, Chiswick.
John D Wood & Co sponsors The Chiswick Calendar
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See also: March 2021 Budget reaction
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