Budget reaction statement from Bobby Singh Braich, Managing Director of Belvoir branches in Kettering and Corby:
“Yesterday’s Budget recognised the important role that the property market plays in the economy and its recovery, which was good to see.
“We welcome the news of the extension to the Stamp Duty Holiday as we had noticed a slow in January compared to previous months as those purchasing properties realised they would not complete their transaction in time to benefit from the Stamp Duty Holiday. We also think people were, generally, scared to commit to new mortgages with the end of the furlough scheme looming and the worry of a wave of potential redundancies that could bring.
“If Mr Sunak had just announced an extension to the Stamp Duty Holiday, I would have been concerned that we were just ‘kicking the can down the road’ and we would have to deal with the same abrupt halt in three months’ time. Instead, he has announced a phased return to the pre-Covid Stamp Duty threshold to allow for a ‘smooth transition’, which is much more sensible and practical, although could still see plunges to the market in June and September.
“There was also some good news for first time buyers with the announcement of a government guarantee on 95% mortgages, with some High Street banks already on board to start offering this from as early as next month. Mr Sunak says he wants to turn ‘generation rent into generation buy’ but property lettings also contribute to the economy too - not just for landlords and letting agents but also contractors and trades people and can help those on benefits or lower incomes to put a roof over their heads, so I hope this won’t negatively impact the lettings side of the property market too much.
“All in all, we are happy with the lifeline that the Budget has provided the property market with today but remain cautious to how this will all unfold in the long term.”