Estate agent welcomes Budget boost for Peterborough housing market
An independent estate agent says the Peterborough housing market is set for a boost after Chancellor Ricki Sunak extended the stamp duty holiday.
Independent estate agents Wilson & Co Homes, in Cygnet Park, Hampton, say the move announced in today’s Budget will help ease the lack of housing supply in the city.
Bosses say the Chancellor’s decision to extend the stamp duty reduction to the end of June should kickstart the low to mid-range housing market, as homeowners will find it easier to obtain mortgages.
He said there would also be a growth in the market as a result of the Chancellor’s new mortgage guarantee in which some buyers will only need to provide a five per cent deposit.
Daniel Wilson, managing director, said: “Some buyers are finding getting a mortgage difficult at the moment.
“Suddenly buyers who couldn’t, will be able to get on the ladder easier, they won’t need as high a deposit.
“House prices at the lower end will probably rise as more people can afford to buy, which may mean more houses come on the market.
“It’ll give the market a nudge, and it may be an even bigger nudge than the extension of stamp duty.
He said: “The stamp duty holiday extension will help buyers to use their savings as greater deposits, instead of paying for the stamp duty tax, which usually can’t be borrowed funds.”
When the stamp duty holiday finishes in June the threshold for paying stamp duty will reduce to £250,000 until the end of September, double the normal threshold before the initial holiday was announced.
Mr Wilson said: “Over the last 12 months, we’ve seen homeowners put their moving plans on hold.
“They seem to be waiting it out and seeing what the end of the third lockdown brings.
“This stamp duty holiday extension may prompt them to re-start their plans to move, and put their homes on the market, supplying some much-needed housing stock to the property market.
“It will not only ease pressure on solicitors trying to push property sales through by the end of March, it will also help boost the number of homes available at the higher end of the property market in Peterborough
“More local families and homeowners selling their homes to move into one more suitable will directly affect the higher end of the housing market.
“Those selling their homes will look to purchase more expensive, larger properties, which will in turn increase the demand for homes in the higher price brackets.”
But Mr Wilson warned there were concerns that ending the extension might create a ‘cliff-edge’ which could leave buyers rushing to try to get their property sales through in time to take advantage of the tax holiday.