Budget 2021: Housing

I welcome the Chancellor’s housing measures announced in the Budget on Wednesday.

The current cut in stamp duty, announced last summer, has helped thousands of people purchase their own home. In order to avoid current purchases not being completed in time for the end of March deadline, the Government is extending the cut to stamp duty until the 30th June.

Further measures will then continue with the lower threshold for paying stamp duty being raised to £250,000 until the end of September, meaning that 60% of buyers will not pay stamp duty, before returning to the usual threshold level from 1st October.

Even with the stamp duty cut, the Government recognises that the cost of a housing deposit is still a significant barrier for people to get onto the property ladder.

That is why from April 2021 a new 95% mortgage guarantee scheme will be available, allowing homebuyers to secure a mortgage up to £600,000 with a 5% deposit. The scheme will be available for new mortgages up to 31st December 2022. All buyers will have the opportunity to fix their mortgage rate for at least five years.

Housing is one of the most important sectors for creating jobs and nationally an estimated 240,000 people are employed by housebuilders and their contractors. These measures will further contribute to supporting jobs in Norwich and ensure that we have the homes Norwich needs which is one of the My Plan priorities I have set out for my constituents.

I welcome these housing measures, which I am confident will support many constituents in Norwich North in getting on to the property ladder and owning their own home. I therefore encourage everyone who is eligible to consider using the support measures available.