Sheffield estate agency boss welcomes Budget's stamp duty holiday extension and mortgage guarantee scheme: 'A vibrant housing market means a very positive economy'

The Chancellor’s decision to extend the stamp duty holiday and introduce a new mortgage guarantee scheme has been welcomed by the boss of a Sheffield estate agency – who said helping the property market will have a ‘knock-on effect’ on the wider economy.
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In his spring Budget, Chancellor Rishi Sunak confirmed that the stamp duty holiday – under which people do not pay the tax on the first £500,000 of a property purchase in England and Northern Ireland – will be extended until the end of June, saying that the ‘sheer volume of transactions’ meant many ‘won’t complete in time’.

After June 30, the threshold for paying stamp duty will drop to £250,000, then from October 1 it will return to £125,000.

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Meanwhile the guarantee scheme will involve offering government-backed 95 per cent mortgages from April onwards.

The stamp duty holiday has raised the threshold at which the tax is payable to £500,000. Picture: Chris Etchells.The stamp duty holiday has raised the threshold at which the tax is payable to £500,000. Picture: Chris Etchells.
The stamp duty holiday has raised the threshold at which the tax is payable to £500,000. Picture: Chris Etchells.

The Chancellor said it was ‘a policy that gives people who can’t afford a big deposit the chance to buy their own home’, adding: “As the Prime Minister has said, we want to turn generation rent into generation buy.”

Mark Ross, managing director of Sheffield estate agent Redbrik, said the Budget’s measures for property were ‘largely positive’.

“It feels like they're using property as a real lift in terms of how we're going to get ourselves out of this economic situation. For anyone who is a homeowner, or aspiring to be a homeowner, this is a great Budget for them.”

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He said the stamp duty holiday ‘allows sellers to get the best possible price for their home, and buyers need less cash at the point of transaction’.

Mark Ross, managing director of Redbrik. Picture: Redbrik.Mark Ross, managing director of Redbrik. Picture: Redbrik.
Mark Ross, managing director of Redbrik. Picture: Redbrik.

"I'm sure it's not an uncommon opinion but I just don't believe stamp duty is a good tax anyway,” Mark said. “If you can get people moving it generally stimulates the wider economy - lawyers, removals, estate agents, tradespeople. It has a real knock-on effect. A vibrant housing market generally in the UK means a very positive economy.”

Mark said the ‘devil is absolutely in the detail’ of the mortgage guarantee scheme – “You just don't know what the caveats are” – but added: “We are looking to support first time buyers as much as we can and with rents rising, it is significantly better value to own a home than it is to rent. Mortgage payments are significantly cheaper, if you've got the deposit. For anyone looking to get on the housing ladder, it's absolutely fantastic that this is there.”

But he emphasised that buyers needed the ‘right advice’. “The last thing we would want is everybody thinking that as long as they've got five per cent they can go out and buy a £600,000 or £595,000 property, because the chances are you probably can't.”

Mark said he thought the Government was ‘really trying’.

Chancellor Rishi Sunak outside number 11 Downing Street. (Photo by Leon Neal/Getty Images)Chancellor Rishi Sunak outside number 11 Downing Street. (Photo by Leon Neal/Getty Images)
Chancellor Rishi Sunak outside number 11 Downing Street. (Photo by Leon Neal/Getty Images)
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“It's obviously an unprecedented situation and what I'm really pleased about is they're focusing on property to try and lift the UK economy and help it move forward. I'm sure I could come up with a wish list of 10 or 15 things they could do but they're just probably not realistic.”

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In these confusing and worrying times, local journalism is more vital than ever. Thanks to everyone who helps us ask the questions that matter by taking out a digital subscription or buying a paper. We stand together. Nancy Fielder, editor.

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