UK House Builders Facing Changes to Market

With the stamp duty ‘holiday’ now extended to 30 June, buyers and UK house builders have a little extra breathing space with which to get their deals completed and save thousands in tax.  This is good news for the property market and UK house builders with some ongoing momentum whilst the general economy finds its place following the impact of the pandemic.

However, the Halifax House Price Index recently reported that the property market had slowed in February, albeit average house prices are holding steady.  Despite a 0.1% monthly drop in house prices, the figure is actually 0.5% higher than in the previous three months (December to November).  Prices are also up 5.2% on February 2020 according to the Halifax.

Russell Galley, Managing Director, Halifax, said: “The housing market has been at something of a crossroads at the start of this year, with upcoming events key to determining the path of activity and prices over the next few months.  The government’s decision to extend the stamp duty holiday – one of the main drivers of demand from homemovers during the pandemic – has removed a great deal of uncertainty for buyers with transactions yet to complete.

The new mortgage guarantee scheme is another welcome development from this week’s Budget.  Whilst mortgage approvals have reached record highs in recent months, hitting levels not seen since before the financial crisis of 2008, raising a deposit continues to be the single biggest hurdle for first-time buyers to overcome.

In the longer-term, the performance of the housing market remains inextricably linked to the health of the wider economy.  The pace and extent of recovery are still highly uncertain, and much will depend on the ongoing success of the UK’s vaccination roll out.”

Despite a 0.1% monthly drop in house prices, the figure is actually 0.5% higher than in the previous three months (December to November)

UK House Builders – Changes to Help to Buy

A separate consideration for UK house builders is the changes to the Help to Buy scheme with the date to legally complete a purchase (Equity Loan scheme 2013-2021) is now 31 May 2021.

The new scheme (Equity Loan 2021-2023) now enables first-time buyers to take a government loan of between 5% and up to a maximum 20% (40% in London) of the full purchase price of a newly built home.

UK house builders will need to be registered for Help to Buy: Equity Loan and the scheme is now based on maximum house prices regionally. UK house builders can find out more here.

If you are a UK house builder seeking property development funding, then you can search and compare specialist loans instantly here.  For advice then speak to a Case Manager now on 0207 096 2003.

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