leadf
logo-loader
viewLloyds Banking Group

Housebuilders celebrate Chancellor's stamp duty and mortgage guarantee moves

Mortgage borrowers who can only put up a 5% deposit will have the rest guaranteed by the government.

Lloyds Banking Group -

Housebuilders were among the best of the risers as investors digested a range of Budget measures from Rishi Sunak to keep the housing market buoyant.

Catching the eye was confirmation of a mortgage guarantee scheme to help first-time buyers onto the property ladder.

Mortgage borrowers who can only put up a 5% deposit will have the rest guaranteed by the government.

Sunak said Lloyds Banking Group PLL (LON:LLOY), Natwest Group PLC (LON:NWG), Santander and HSBC are ready to launch the scheme next month with other major lenders set to join the scheme shortly.

The Chancellor also extended the stamp duty holiday until June and then said it would be staggered and only return to its pre-pandemic stating level of £125,000 from 1 October.

“Extending the stamp duty holiday until the end of June, then phasing it out until September should help avoid a sudden downturn in prices caused by the much-feared cliff-edge end," said Ian Mackenzie from the Guild of Property Professionals.

“With the zero-rated stamp duty limit extended to £250k until the end of September and the average UK house price being £252k, it means that thousands of people can benefit from this incentive - particularly first and second-time buyers."

Banking sector trade body UK Finance added: “We welcome the certainty an extension to the Stamp Duty holiday and a phased approach to its ending brings for buyers and sellers. 

"This will help prevent a cliff edge, reduce the risk of house sales collapsing and will prove beneficial for all parties involved in the housing market.”  

“The banking and finance industry supports innovation in the mortgage market, particularly measures which enable borrowers to realise their dream of homeownership, through lower deposits.  

Persimmon PLC (LON:PSN), the UK’s largest housebuilder was one of the best risers on the FTSE 100 market, adding 5% to 2,852p following good results this morning.

Taylor Wimpey rose 4.9% and Bellway 5.7%.

Quick facts: Lloyds Banking Group

Price: 44.39 GBX

LSE:LLOY
Market: LSE
Market Cap: £31.49 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Alpha Growth hail 'focus, concentrating on the business in hand' to improve...

Alpha Growth PLC's (LON:ALGW) (OTCQB:ALPGF) Gobind Sahney talks to Proactive London's Katie Pilbeam about their improved operational and financial performance which continued in the first quarter of 2021. Sahney says Alpha used the challenging environment of 2020 to 'really focus' of which he...

4 hours, 58 minutes ago

2 min read