While 2020 has seen many of us struggle being cooped up in the house for weeks at a time, 2021 could be your year. With all the announcements that have been released this year to help the property market get back on its feet, 2021 is certainly the time to be getting on the property ladder.
Stamp Duty Holiday
If you haven’t already heard, in June of 2020 the chancellor announced the new Stamp Duty Holiday which means you won’t have to worry about paying any Stamp Duty if the house you have your eye on has a value of £500,000 or less. Normally stamp duty is a tax on the land of a house that you pay upon purchasing your home, and like income tax, is valued over a certain threshold. With the Stamp Duty Holiday now in action until March 31st 2021 you can snap up a home while saving up to £15,000 on upfront payments. And while we all know how long and how tedious it can be saving for the deposit on your first home, a stamp duty holiday could really make a difference to how much you have available to put down as a deposit and how small you want your mortgage to be. So while you’ll have to be hasty to take advantage of this government scheme, it could make a huge difference to how your 2021 goes. This has kept law firms such as Randolph Law Firm and garyhsmith.com, very busy as more clients require legal help when purchasing a house.
Since 2008, we’re all too aware of the horrors of the 10% deposits ensue and just how long it takes to save up for them. Well, thanks to another government announcement, this has now been halved to get the wheels turning for first time buyers again. 5% deposits mean not only does it take less time to save but you also get more for your initial payments and after all the solicitor fees and estate agent costs that are always a little nast, putting down a lower deposit will certainly make it easier, especially for first time buyers.
If you’re determined to get on the property ladder in 2021 and take advantage of the stamp duty holiday, then Shared Ownership could be your answer. This mode of buying a home has seen a great increase in popularity of the years with the lower deposits and manageable mortgages and 2021 is expected to be no different. With a whole range of homes available on dedicated property portals such as propertybooking.co.uk and specialist housing associations such as moathomes.co.uk, Shared Ownership allows you to buy between 25%-75% of a property and rent the rest for a super low cost. The remaining portion of your home is owned by a non-profit housing association and therefore you won’t be given a run for your money like many private landlords can often do. The scheme allows you to get on the property ladder in some of the best spots in London and the South East while paying a fraction of the price that normally comes with these sought after areas.
So whether you fancy a change, you’re looking to invest in a new area or you just feel like you need a change from your own four walls, buying a property in 2021 could really give you the boost you need after a rather dismal 2020.