In order to stimulate the housing market amid the coronavirus outbreak, Chancellor Rishi Sunak announced in July that the UK government would be raising the threshold for stamp duty from £125,000 to £500,000. The new policy is estimated to cost the UK government approximately £3.8 billion and is viewed as positive news for potential homeowners looking to purchase properties in the UK at a lower price.
New opportunities for first-time buyers
The majority of people looking to benefit from shared ownership are first-time property buyers, but the move from the government will also offer support for those looking to buy a larger share of their properties. However, the UK government has stated that the cut will be temporary and will end at the end of March next year. Until then, the average bill for stamp duty is expected to drop by approximately £4,500.
Shared ownership customers usually fall at the lower end of the property market and will benefit the most from the government scheme, giving them the opportunity to get onto the property ladder after the housing market was forced to freeze between the months of March and May. The news is also positive for shared ownership buyers looking to buy in the most expensive areas of the UK, such as those looking to purchase new homes in Cheshire.
Increase in mortgage approvals
According to data from the Bank of England, the stamp duty cuts have led to a surge in mortgage approvals, as lenders approved 66,281 home loan agreements in July, which is an increase of 26,379 since June.
At Cerris Homes, we offer shared ownership in Cheshire to give you a helping hand when you're looking to buy the home of your dreams. We have a range of stunning new build developments in Cheshire that are designed to suit you, so if you're looking for affordable housing in Cheshire, don't hesitate to get in touch with our friendly team today.