Home Buying news: page 2
- May 2024
Leasehold and Freehold Reform Act reforms introduced
The government introduced leasehold reforms in May 2024 under the Leasehold and Freehold Reform Act, including a 990-year standard lease extension term and standardised service charge bills.
- March 2024
Mortgage approvals for house purchases reach highest level since September 2022
Bank of England data show net mortgage approvals for house purchases rose to 61,300 in March 2024, the highest since September 2022, while remortgaging approvals fell and the rate on new mortgages eased.
Policy paper published on changes to First-time Buyers' Relief rules
HMRC has published a policy paper and draft legislation changing the rules for claiming Stamp Duty Land Tax First-time Buyers' Relief, covering leases held through nominees or bare trustees and the definition of a first-time buyer.
- November 2023
Leasehold and Freehold Reform Bill introduced to Parliament
The Leasehold and Freehold Reform Bill was introduced to Parliament on 27 November 2023, setting out measures to change lease extension, freehold purchase and service charge rules in England and Wales.
Mortgage Guarantee Scheme deadline extended to 30 June 2025
The government has extended the deadline for new 95% mortgages under its Mortgage Guarantee Scheme to 30 June 2025, updating the scheme's policy paper on 23 November 2023.
Autumn Statement extends mortgage guarantee scheme to June 2025 and cuts employee National Insurance by 2p
The Chancellor has extended the mortgage guarantee scheme to June 2025 and cut the main rate of employee National Insurance by 2p, alongside tax and spending measures worth around £17 billion a year.
- June 2023
Government publishes Mortgage Charter with lenders covering 85% of mortgage market
The government published the Mortgage Charter on 26 June 2023, with lenders covering 85% of the UK mortgage market committing to measures for borrowers in financial difficulty.
- April 2023
Help to Buy 2 scheme ended in England
The Help to Buy 2 equity loan scheme closed to new applications in England at the end of March 2023, after two years in which it was restricted to first-time buyers.
Help to Buy - Wales opens to first-time buyers and home movers with a 5% deposit for homes up to £300,000
The Welsh Government's Help to Buy Wales shared equity loan scheme applies to new-build homes up to £300,000 from 1 April 2023, for first-time buyers and home movers with a 5% deposit.
Help to Buy - Wales price cap rises to £300,000 with EPC B requirement
The Help to Buy Wales purchase price cap rose from £250,000 to £300,000 on 1 April 2023, and every home sold through the scheme must now meet a minimum energy rating of EPC B.
- March 2023
Help to Buy scheme closed in England
The Help to Buy equity loan scheme in England closed at the end of March 2023 after ten years, with an official evaluation later finding it supported first-time buyer sales but also pushed up prices in some areas.
- February 2023
Schedule 4ZA temporarily modified by the Stamp Duty Land Tax (Temporary Relief) Act 2023
The Stamp Duty Land Tax (Temporary Relief) Act 2023 modified Schedule 4ZA of the Finance Act 2003 from 8 February 2023, changing the higher rates of stamp duty land tax for additional dwellings.
Stamp Duty Land Tax (Temporary Relief) Act 2023 receives Royal Assent
The Stamp Duty Land Tax (Temporary Relief) Act 2023 received Royal Assent on 8 February 2023, putting higher SDLT thresholds into law until 31 March 2025.
Share of first-time buyers taking ultra long-term mortgages more than doubles
UK Finance figures show 18% of first-time buyers took out a mortgage term longer than 35 years in February 2023, up from 8% a year earlier, as longer terms spread among home movers too.
- January 2023
SDLT Bill amendments and third reading in Commons
Amendments making the stamp duty land tax reduction temporary were tabled and the Bill had its third reading in the Commons on 10 January 2023, ahead of Royal Assent on 8 February 2023.
- December 2022
House purchase lending begins sustained year-on-year decline
UK Finance reports that lending to first time buyers and home movers fell year on year in every month from December 2022, with a further contraction expected in the fourth quarter of 2023.
Minister announces Help to Buy - Wales extended to March 2025 with new price cap and EPC rules
The Welsh Government extended Help to Buy Wales to March 2025, raising the purchase price cap from £250,000 to £300,000 and requiring homes sold through the scheme to meet EPC B.
- November 2022
Autumn Statement introduces sunset clause to SDLT relief
Chancellor Jeremy Hunt used the Autumn Statement on 17 November 2022 to add a sunset clause to the stamp duty land tax reduction, ending the relief in March 2025.
- October 2022
Help to Buy: Equity Loan scheme closed to new applicants in England
The Help to Buy: Equity Loan scheme closed to new applicants in England on 31 October 2022, ending a route to buying a new build home with a smaller deposit.
Starting threshold for main residential LTT rises to £225,000 in Wales
The Welsh Government raised the starting threshold for main residential Land Transaction Tax in Wales from £180,000 to £225,000 on 10 October 2022, with the first band from £225,000 to £400,000 taxed at 6%.
Help to Buy Equity Loan scheme closed to new applications in England and Scotland
The Help to Buy equity loan scheme closed to new applications in England and Scotland in October 2022, while the separate Welsh scheme continues and existing borrowers can still remortgage or repay.
- September 2022
Welsh Government announces changes to main residential LTT rates and bands
The Welsh Government announced on 27 September 2022 that main residential rates of Land Transaction Tax would change on 10 October 2022, raising the starting threshold from £180,000 to £225,000.
Chancellor announces SDLT threshold increases
Kwasi Kwarteng announced on 23 September 2022 that stamp duty land tax nil rate bands would rise, cutting the tax for many buyers in England and Northern Ireland until March 2025.
SDLT nil-band threshold change reflected in guidance
HMRC has updated its Stamp Duty Land Tax relief guidance to reflect the nil-band threshold change that took effect on 23 September 2022, covering first-time buyers and multiple dwellings.
New SDLT rates introduced on 23 September 2022
HMRC added worked examples to its leasehold Stamp Duty Land Tax guidance on 23 September 2022, showing the residential rates that took effect in England that day.
Government announced removal of 2% standard rate band and raised FTBR thresholds
The government announced on 22 September 2022 that the 2% standard rate of stamp duty land tax on the portion of a residential property price between £125,000 and £250,000 no longer applies.
Stamp duty cut announced, benefiting London first-time buyers most
The Resolution Foundation says the September 2022 fiscal statement's stamp duty cut will reduce the tax bill on the average first-time buyer home in London by £6,300, with no gain in the North East.
- July 2022
VAT rate for energy-saving materials in residential buildings in Great Britain cut to 0%
VAT on energy-saving materials installed in residential buildings in Great Britain is now 0%, HMRC guidance confirms, with the relief running until 31 March 2027.
- June 2022
Leasehold Reform (Ground Rent) Act 2022 comes into force
The Leasehold Reform (Ground Rent) Act 2022 came into force on 30 June 2022, ending financial ground rent on most new long residential leases in England and Wales.
Building Safety Act 2022 leaseholder protections come into force
Financial protections for leaseholders in buildings at least 11 metres or five storeys high with historical safety defects took effect on 28 June 2022 under the Building Safety Act 2022.