THE NEW Budget has been welcomed as "great news" for the Bournemouth housing market, according to estate agents.

In the Chancellor's Budget announcement Rishi Sunak set out two main policies that are expected to benefit both the property market and buyers.

During the first lockdown the market briefly shrunk and house prices dropped.

However the sector has since bounced back at a record rate and will continue to do so with the new Budget that was revealed yesterday. 

Rightmove recorded their busiest ever day yesterday as more than 9 million buyers flocked to the property site hoping to take advantage of the five per cent mortgage deposit scheme and the extension of the stamp duty holiday.  

Rightmove’s Director of Property Data Tim Bannister said: "It’s clear from our record-breaking traffic numbers that the Spring Budget has introduced buyers into the market who were not perhaps able to consider moving until now or who were waiting to hear what was going to happen to stamp duty. 

"Many people who may have been delaying a move for a whole multitude of reasons now have the impetus and encouragement to take their next life step – whether it’s getting a foot on the property ladder as a first-time buyer or trading up for more space and a bigger garden.”

What does the stamp duty tax holiday extension actually mean for buyers?

The new Budget sets out the 'road to recovery' in the wake of the coronavirus pandemic.

Bournemouth Echo:

The stamp duty holiday extension is expected to help thousands who were caught in the 'log jam' - (image stock)

After the first lockdown Rishi Sunak announced the stamp duty tax holiday which was expected to end on March 31. 

In his latest announcement the Chancellor declared that the stamp duty holiday -which freezes extra property costs - will continue until the end of June this year. 

The extension means if you are buying a home up to the value of £500,000 you will not pay any stamp duty if the purchase is completed by 30 June 2021. 

This has come as 'great news' to thousands of current buyers who have been caught in a 'log jam' trying to reach the previous March deadline. 

Steve Isaacs from Luxury and Prestige Realty in Canford Cliffs said: "This is great news for home movers. Lots of buyers and sellers have been racing to meet the previous deadline which has put huge pressure on all concerned including solicitors, lenders, mortgage brokers and removal companies.

"The rates of stamp duty land tax are too high in my opinion and they are definitely a barrier to many people moving home. It would be great to see a permanent reduction in the future, which might be cost neutral to the Treasury as the volume of transactions would increase."

Who does the new 5% mortgage guarantee affect and what does it mean? 

The second part of the Chancellors plan is aimed to help buyers with small deposits get on the property ladder.  

Bournemouth Echo:

People will be able to get on to the property ladder with a smaller deposit. (image-stock)

Under the new scheme, which launches in April, home buyers will be able to purchase homes priced up to £600,000 with a deposit of just 5 five per cent.  

James Scollard from Clifftons Estate Agents said: "It is great news regarding the five per cent mortgage guarantee deposit, which is not limited to first time buyers or new builds.

"This is open to all as a main residence and will add confidence in the marketplace, although, I’ll be interested to see how competitive the mortgage rates will be when they are fully released.

"It’s also worth noting, central government is providing extensive funding for investment and growth in Dorset creating jobs and industry growth, which will also filter through to the local housing market.

"Overall it’s a great time to buy property and a great time to sell property."

Richard Donnell, Research Director, Zoopla said: "Taken together, the stamp duty holiday extension and the 95 per cent mortgage guarantee scheme provide continued support for the housing market as we help the economy respond to the pandemic - they address barriers to movement and access to home ownership but will have limited impact on shifting the longer term fundamentals of the housing market."