As we head towards the anniversary of the first lockdown it’s hard to escape the ongoing social and economic impact of Covid-19. From a commercial perspective you only have to step outside to see real life examples. The empty, non-viable retail units now lining our high streets are a case in point.
From 1st April, the existing Help to Buy Equity Loan Scheme (2013-2021) will be replaced with the new Help to Buy Equity Loan Scheme (2021-2023) and will only be available to first-time buyers purchasing a new build property. Also on that date, regional property price caps will be introduced, with each area of the country having a maximum property value that will be eligible for the scheme.
Shawbrook’s 2020 Broker Barometer looks at the primary concerns of the broker community, revealing a largely positive outlook for 2021.
Despite on-going uncertainty as we continue to navigate the challenges of the pandemic, brokers remain optimistic when looking at the year ahead. Over two thirds (67%) of commercial brokers said they were confident about the UK lending environment this year, whilst 60% state they felt confident about the growth of their business.
With New Year resolutions made, many in the UK will be looking ahead having firmly shut the door on 2020. Despite a particularly difficult year generally, and with our current lockdown status in force; on a social and an economic level, those serving the mortgage industry can still look to the future with optimism.
KENSINGTON MORTGAGES – MAKING STAMP DUTY HOLIDAY PERMANENT COULD REAP £139 MILLION A YEAR TAX BOOST FOR TREASURY
Extending the stamp duty holiday could be fiscally positive for the UK treasury, according to research commissioned by Kensington Mortgages. Retaining the threshold for paying Stamp Duty Land Tax (SDLT) at its current level of £500,000 would provide new tax revenues – generated by higher transaction volumes, increased property prices, household consumption, and housing market activity – ranging between £2.3 and £4.1 billion. According to analysis by the Centre for Economics and Business Research (Cebr), in the upper bound estimate this would lead to a fiscal surplus of £139 million.
The bridging market remains strong, despite the clear challenges presented by 2020. Savvy investors – and their brokers – should be confident about the outlook as we head towards the New Year. We saw an understandable drop off in activity in Q2, but as the property market has rebounded, so too has bridging.