Budget 2009 – PROPERTY NEWS
The UK Budget for 2009 was presented on 22nd of April by Alistair Darling and included, amongst other things, an extension of the Stamp Duty tax holiday. The UK Government also confirmed its commitment to its mortgage rescue scheme.
Stamp Duty Holiday
The Government has again underlined its commitment to supporting homebuyers. The 2009 Budget has announced an extension of the Stamp Duty Land Tax (Stamp Duty) Holiday for residential properties up to £175,000 until midnight on 31 December 2009. It is estimated that around 60% of purchasers are currently exempt from payment of stamp duty as a result of the stamp duty holiday.
Government package to support housing supply
The Government has announced a £600m fund to kick start house building. It aims to provide an additional 10,000 homes in England and Wales over the next two years. The Government package includes £100m for Local Authorities to build new social housing at best standards of energy efficiency. The current economic climate continues to have a significant impact on housing supply. Additional short term spending during the downturn is planned to stimulate housing development as well as boost the capacity of the house building industry in the long term.
Help if you are in negative equity
The Government’s mortgage rescue scheme aims to help those who experience serious difficulties in making mortgage payments. The Budget announced extra Government support for the scheme. You may be able to apply if:
- you are in negative equity (when the amount owed on your mortgage is more than the value of your property) and
- the value of your mortgage (and any loans taken out against your home) is less than 100% of the value of your home.
Help for homeowners and getting on the property ladder
The Government has also launched a number of initiatives and programmes to assist first time buyers in getting on to the property ladder.
Those who have concerns or worries about mortgages and getting onto the property ladder are able to access the Homeowners Mortgage Support via the Government’s website.