On the 19th of March 2014 The Chancellor, George Osborne, presented a ‘budget for savers’. In this story, we delve into the details of the budget, looking at what changes have been made relating to the property sector and the benefits for you.
Help to Buy
The Budget 2014 confirmed that the government is extending the first part of the Help to Buy scheme for equity loans until 2020. This enables people to still contribute 5% deposit but on new- build property only.
The first part of the Help to Buy scheme was originally meant to expire in 2016, but the Chancellor has extended this in order to help people get onto the property ladder, plus boost the UK construction industry. Mr Osborne said “120,000 new homes would be built as a result of the scheme”.
The second part of the Help to Buy scheme regarding Mortgage guarantees has not been mentioned in the Chancellors speech.
Find out more about the help to buy scheme by clicking here
The Budget 2014 confirmed that the government is extending the first part of the Help to Buy scheme for equity loans until 2020. This enables people to still contribute 5% deposit but on new- build property only.
The first part of the Help to Buy scheme was originally meant to expire in 2016, but the Chancellor has extended this in order to help people get onto the property ladder, plus boost the UK construction industry. Mr Osborne said “120,000 new homes would be built as a result of the scheme”.
The second part of the Help to Buy scheme regarding Mortgage guarantees has not been mentioned in the Chancellors speech.
Find out more about the help to buy scheme by clicking here
Stamp Duty
Previously, corporate stamp duty land tax has been at a rate of 15% for any residential properties over the £2,000,000 threshold. It has been announced that the threshold has been reduced by 75%.
From midnight on the 19th of March, any property being purchased through at corporate envelope at a value of £500,000 or more will be subject to the increase duty rates.
Many of the properties which fall in this category are empty properties held in corporate envelopes to avoid stamp duty.
Although corporate companies will be feeling the pinch from this announcement, private homebuyers won’t feel the effect with private stamp duty land taxes being held at the same rate.
Stumped by stamp duty? Find out everything you need to know by clicking here
From midnight on the 19th of March, any property being purchased through at corporate envelope at a value of £500,000 or more will be subject to the increase duty rates.
Many of the properties which fall in this category are empty properties held in corporate envelopes to avoid stamp duty.
Although corporate companies will be feeling the pinch from this announcement, private homebuyers won’t feel the effect with private stamp duty land taxes being held at the same rate.
Stumped by stamp duty? Find out everything you need to know by clicking here
Self-Builders – Right to Build
In order to help self-builders, a “right to build” scheme will be created and £150m will be provided by the government to support this. Also an extra £500m to small house building firms will be given, which has been welcomed by the Federation of Master Builders (FMB)
In order to help self-builders, a “right to build” scheme will be created and £150m will be provided by the government to support this. Also an extra £500m to small house building firms will be given, which has been welcomed by the Federation of Master Builders (FMB)
The opportunity for new builds will also aid the regeneration of run down council estates.
Looking for a new build? We work with many large and private developers and have a stunning range of new build properties across Berkshire and Surrey. Register with us today to keep up-to-date with all new developments.
If you’re a maker, a doer or a saver: this Budget is for you!
The budget brought with it radical changes to savings and pensions, plus encouragement for homeowners. The economy is certainly showing signs of recovery and although there is more work to be done, the Budget promised to secure the recovery and build a more resilient economy.
The OBR forecast the largest upward revision in economic growth in 30 years, with employment levels up and the national deficit down by one third.
A resilient economy is a more balanced economy with more exports, more building and more investment. With this in mind the Chancellor announced that the funding available to exporters will be doubled to £3 billion and the interest rates charges on this lending will be cut by a third.
Announcements such as the increase in personal allowance to £10,000 and the shake-up in savings mean that individuals will be able to keep more of the money they earn and save. Mr Osborne also predicted that earnings will rise at a greater rate to inflation, meaning that by 2015 households will have a larger disposable income, which is why the government have announced a rise in National Minimum Wage.
Due to the recent flooding and the damage this has caused for many home owners, there will be £140m extra for flood defence repairs and maintenance. Also, after the storms which have battered the UK for the last couple of months there has been £200 million allocated towards repairing potholes.
Other announcements that will significantly benefit individuals include a council tax and fuel duty freeze, meaning there will be no fuel duty rise as planned for September. In 2017 we will get a new £1 coin as quoted by the Chancellor “A more resilient pound for a more resilient economy!” The new £1 is to be introduced due to counterfeit coins.
The budget brought with it radical changes to savings and pensions, plus encouragement for homeowners. The economy is certainly showing signs of recovery and although there is more work to be done, the Budget promised to secure the recovery and build a more resilient economy.
The OBR forecast the largest upward revision in economic growth in 30 years, with employment levels up and the national deficit down by one third.
A resilient economy is a more balanced economy with more exports, more building and more investment. With this in mind the Chancellor announced that the funding available to exporters will be doubled to £3 billion and the interest rates charges on this lending will be cut by a third.
Announcements such as the increase in personal allowance to £10,000 and the shake-up in savings mean that individuals will be able to keep more of the money they earn and save. Mr Osborne also predicted that earnings will rise at a greater rate to inflation, meaning that by 2015 households will have a larger disposable income, which is why the government have announced a rise in National Minimum Wage.
Due to the recent flooding and the damage this has caused for many home owners, there will be £140m extra for flood defence repairs and maintenance. Also, after the storms which have battered the UK for the last couple of months there has been £200 million allocated towards repairing potholes.
Other announcements that will significantly benefit individuals include a council tax and fuel duty freeze, meaning there will be no fuel duty rise as planned for September. In 2017 we will get a new £1 coin as quoted by the Chancellor “A more resilient pound for a more resilient economy!” The new £1 is to be introduced due to counterfeit coins.
Colin Wells, CEO of Prospect Estate Agency, comments: - "Excitingly, the March 2014 budget has done little to derail the recovering property market. With unemployment falling, domestic growth accelerating and homeowner confidence rising, the 200,000 new home investment and extension of the help-to-buy scheme until the end of the decade has enhanced a positive market place in a measured way."
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- See more at: http://www.prospect.co.uk/news-featured/budget-2014-so-what-does-this-mean-for-the-property-market.html?no-mobile-redirect#sthash.MgepRNdr.dpuf
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