Sunak announced a tapering of the SDLT holiday, gave the go-ahead to 95% mortgages
‘Of course, everyone already knew about the government's extension of SDLT relief, but the transitionary period—halving the rate between July and September—was a surprise,’ Addleshaw Goddard partner Peter Hardy said.
‘Many were worried that the government was simply kicking the can down the road, resulting in another cliff-edge moment only a few months from now, although that may happen then of course. The move will almost inevitably fuel house price growth…and there is a concern that it will make house prices unsustainable leading to a crash with a particularly bad impact for negative equity for those who take the new 95% mortgages.
‘Many questions are still outstanding on how the 95% mortgage will work? Will it be exactly the same as before? It's not clear. We need to know how the government will guarantee them, how long they will last and whether they'll be limited to first-time buyers.’
Sunak also promised business rate reductions for hospitality and leisure to stimulate the High Street. Eligible businesses will be able to claim a 100% discount on business rates until June and two-thirds discount for the rest of the year up to a cap of £2m.
