Budget 2021: Extension to Stamp Duty nil rate band and a new mortgage guarantee scheme

03 March 2021

In a bid to turn ‘Generation Rent’ into ‘Generation Buy’, the Government will implement a new mortgage guarantee scheme and extend the temporary increase in the residential Stamp Duty Land Tax (SLDT) relief.

The SLDT nil rate band was increased to £500,00 across England and Northern Ireland until 31 March 2021. This has been extended until 30 June 2021. In addition to this, between 1 July 2021 and 30 September, the nil rate band reduces to £250,000. It will not return to its original value of £125,000 until 1 October 2021. Funding is provided to the Scottish and Welsh governments for comparable support.

A new mortgage guarantee scheme is to be implemented from April 2021, up until 31 December 2022. This will allow individuals who have a deposit of 5% or above to secure a mortgage on a home up to the value of £600,000. Buyers will have the option of securing their original mortgage rate for a minimum of five years. It is hoped that the scheme will allow more people to buy their homes despite having only a small deposit.

The Budget document is available in full here.


Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.