The Budget 2021: What’s changed for the property sector?
Following the Government's 2021 Budget update yesterday, the Chancellor’s lengthening of the SDLT (Stamp Duty Land Tax) holiday was no surprise, as it had been widely expected, but additional time on a heightened threshold was also announced.
The areas of the Budget relevant to real estate follow the Government’s roadmap out of the lockdown and pandemic, with boosting the property market being key. Investment in renewable energy was also announced, both generation and storage. The whole Budget was structured around a policy of “build back better”; it is to be hoped that the investment announced today in infrastructure and skills will support the property sector as it struggles with the changes wrought by lockdown that may never be reversed.
The key headlines include:
- SDLT holiday on residential purchases extended until the end of June 2021;
- Threshold for SDLT to apply doubled from £125,000 to £250,000 from July to the end of September;
- The nil-rate band will return to £125,000 from October;
- Mortgage lenders will be able to lend on a 5% deposit from April with a Government guarantee to the lenders;
- £20 million to fund a UK-wide competition to develop floating offshore wind demonstrators ;
- £68 million to fund a UK-wide competition to deliver first-of-a-kind long-duration energy storage prototypes;
- £4 million for a biomass feedstocks programme;
- Over £1 billion funding for a further 45 towns in England through the Towns Fund;
- £135 million to progress A66 Trans-Pennine upgrade; and
- £4.8 million to support the development of a demonstration hydrogen hub in Holyhead, Anglesey
Get in touch
If you’d like to find out more about this update, please get in touch with Legal Director, Derryn Rolfe.
All information in this update is accurate at the time of writing. It is meant for general information only and is not legal advice.