At the beginning of July, Halifax confirmed that house prices have fallen four months in a row, overall. This was the first-time house prices had declined since 2010.
When it comes to the quietest time of the year for house sales, Summer is often the season when fewer houses are sold. However, due to the pandemic, there was a significant increase in property sales in July, valuing as much as £37 billion worth of property sales. As lockdown was eased, the demand began slowing down. Data from Rightmove suggests that July has been the busiest month for buying properties for over ten years.
Concerns regarding quarantine meant that fewer people have been holidaying abroad and instead had more time to ponder about their next property purchase.
The government’s initiatives also offer greater incentives to purchase a property in the current climate.
Here are the main initiatives:
Stamp Duty Holiday
For homes in England and Northern Ireland, the stamp duty holiday will last until the end of March in 2021 and it applies to properties that are worth up to £500,000. This means that homebuyers could save up to £15,000 which could potentially be used to help pay for a deposit. For homes in Wales and Scotland, the stamp duty holiday only applies to home of up to £250,000.
Help To Buy Scheme Extension
The government announced the extension of the Help to Buy Scheme on 31st July which means that many families can still benefit from this scheme, despite the building delays of their new homes due to the pandemic. The current scheme outlines that new homes must need to be finished being built by the end of December, however, the extension now means that the deadline has been extended to 28th February 2021. It’s also important to be aware that the deadline for legal completion of sale will remain on 31st March 2021.
These schemes in England which has been initiated by the UK government may differ from the schemes in Northern Ireland, Scotland, and Wales.
The £2 billion insulation scheme applies to both homeowners and landlords and it has been announced by the government as part of a bigger project that aims to reduce emissions across the UK. In this insulation scheme, homeowners will receive financial incentives in the form of vouchers of up to £5,000 for improvements that will help save energy. Further incentives are offered for poorer households where they may be able to receive up to £10,000 in vouchers.
he insulation scheme could enable people to save hundreds of pounds each year and many homes are expected to save as much as £600 each year. This scheme will start in September and it will include an extra £1 billion for public buildings, such as hospitals and schools to improve on insulation, efficiency, and green heating technology.
This scheme aims to help the UK meet its net-zero emission targets by 2050 and it also aims to help properties that are struggling with the cold and damp, as many homes in the UK are some of the oldest in Europe. It’s also people’s health that this scheme can help with as humidity and cold can be hazardous to health.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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