Chancellor Rishi Sunak has today confirmed that the Stamp Duty holiday, announced during the Covid-19 pandemic and due to end on the 31st March, will now be extended until 30th June, AND buyers will have more chance of being able to buy homes with a 5% deposit.
Stamp Duty has been suspended on the first £500,000 of all property sales in England and Northern Ireland since July 2020 - this tax break was due to end on 31 March, but Mr Sunak announced in the Budget that it will now end on 30 June.
After this date, the starting rate of stamp duty will fall to £250,000 until the 30th September, following which, it will then return to the usual level of £125,000.
Landlords and second-home buyers are also eligible for the tax cut, but will still have to pay the additional 3% of stamp duty they were charged under the previous rules.
The chancellor also announced a new "Mortgage Guarantee" in the Budget. Starting in April, the government will provide a guarantee to lenders who offer mortgages to people with a deposit of just 5% on homes with a value of up to £600,000, with a view to once again bringing home ownership within the reach of those with smaller deposits. A number of high street banks are expected to offer 95% mortgages.