Spring has most definitely sprung for the housing sector! With the levitation of the current lockdown regulations upon us, we are seeing a positive change in the market conditions. With positive press encapsulating the housing market, promoting the 95% mortgage scheme and the stamp duty holiday extension, we have seen our sales figures thrive. In this edition, we will discuss the revived mortgage initiative set out to aid first time buyers, the stamp duty holiday extension, the tenant eviction ban extension and the new HMO licensing scheme that has been recently rolled out by Islington Council.
Stamp duty holiday extension:
In Rishi Sunak’s recent budget, it was announced that the stamp duty holiday will be extended to 30th June 2021 at the nil rate band of £500,000, which was due to end 31st March 2021. He also stated that the nil rate band of £250,000 will be present between 1st July 2021 until 30th September 2021. This measure has most definitely maintained confidence in the housing market and there has been an influx of buyers registering and purchasing properties through us since Sunak’s announcement. If you have ever considered selling your property but simply thought that it was not the right time, I can assure you that there has never been a better time than NOW. We have a sea of eager buyers who are actively viewing properties and making offers. For a free valuation, please call 020 7272 1090 today, or email email@example.com and a member of our team will be in contact promptly.
For further details about this measure, please click here.
95% mortgages backed by the UK Government:
Again, Sunak promised a new mortgage guarantee scheme which will help raise home ownership numbers from this month. In essence, lenders who provide mortgages to homebuyers who can only afford a 5% deposit will benefit from a government guarantee on those mortgages. Sunak announced that Lloyds, NatWest, Santander, Barclays, and HSBC will be offering 95% mortgages from this month and more lenders are set to follow shortly after. This is a beneficial scheme for first time buyers as it helps them get onto the property ladder, even if they once thought that this would be impossible. Within 30 minutes of the announcement, Rightmove said that use of its mortgage calculator had increased by a staggering 85% and overall traffic by 16%. Again, this is just more proof to highlight that the demand for properties from buyers is present.
New HMO licenses to be rolled out across Islington, where applicable, by 31st May 2021:
Islington Council have added three new licensing requirements to their already existing HMO licencing scheme, all of which will be valid for 5 years. The new schemes are known as ‘Additional Licencing’, ‘Selective Licensing', & 'S257’ and they were introduced from 1st February 2021. To find out whether your property requires a new license, click here or email firstname.lastname@example.org. If you need to apply for one of these new licenses, this comes as a reminder that you must apply for it before 31st May 2021 or you will risk a potential fine of £30,000 or even further prosecution.
Tenant evictions ban extension:
Housing secretary, Robert Jenrick, stated that a further extension to the current ban on bailiff-enforced evictions in England will be in place until May 31st 2021. This means that landlords are required to provide their tenants with a six-month notice period before they can evict them or repossess their property. There are a few exemptions to this regulation, and they are as follows:
- Anti-social behaviour (four weeks’ notice)
- False statements provided by the tenant (two to four weeks’ notice)
- Over 6 months’ accumulated rent arrears (four weeks’ notice)
- Breach of immigration rules under the ‘Right to Rent’ policy (three months’ notice)
As our Easter break is imminent, we would like to wish you all a Happy Easter and to enjoy your much deserved break with your loved ones, even if it will be a socially distanced affair outdoors. Just so you are aware, our office will be closed on Good Friday (2nd April 2021), Easter Sunday (4th April 2021) and Bank Holiday Monday (5th April 2021). Again, Happy Easter and we look forward to writing to you soon!