9th July 2020
The Chancellor of the Exchequer Rishi Sunak announced two key changes for home owners and buyers in his ‘Plan for Jobs’ speech on 8 July, as he seeks to kick-start the economy and avoid the much-predicted recession caused by the coronavirus pandemic.
The two new policies are:
From 8 July 2020 there is a cut in temporary stamp duty land tax (SDLT) for residential property, as the Nil Rate Band in England and Northern Ireland is raised from £125,000 to £500,000.
This will apply until 31 March 2021 and will mean that nine out of ten people getting on or moving up the property ladder should pay no SDLT at all. The new rule will replace the rules for first-time buyers during this period.
While this is good news for anyone who has started the purchase process or is contemplating doing so, it is understandably disappointing for those people who pressed on with their transactions in difficult circumstances during the lockdown and who have missed out on this assistance if they managed to move before 8 July..
The move will put more money in the pockets of house buyers, and it is hoped that this will trickle down into the economy as people spend on decoration and new furniture, and construction companies see property change hands quicker.
The Government has also introduced a £2 billion Green Homes grant, providing at least £2 for every £1 a homeowner or landlord spends to make their home more energy efficient, up to £5,000 per household.
For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household. In total this could support over 100,000 green jobs and is expected to help strengthen a supply chain that will be vital for meeting the target of net zero greenhouse gas emissions by 2050.
This scheme aims to upgrade over 600,000 homes across England, saving households hundreds of pounds per year on their energy bills. Details of how to apply for this grant have yet to be announced.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.