If you’re a first-time buyer, or certainly hoping to be very soon, 2021 could be your year. Not only is the government laying out plans to aid first time buyers onto the property ladder with schemes including the stamp duty extension and the lowering of deposits, there are also plenty of new properties in desirable areas joining the housing market and specifically tailored to the first time buyer. So what are the best ways you can get onto the property ladder this year, and what does 2021 offer that’s different from any other year when it comes to getting your hands on your first home?
Stamp Duty Extension
As a first time buyer, you may not yet be completely sure of what exactly stamp duty is but what you should definitely be aware of that not having to pay it will save you a lot of money. Stamp Duty is basically a tax on the land of a property that is calculated based on the total value of the house. Stamp Duty is paid on a property that is valued at more than £125,000 but until June of 2021 there is no Stamp Duty to pay at all. This could save you up to £15,000 so it is well worth taking advantage of. First time buyers are exempt from paying stamp duty up to properties of value £500,000 which can definitely help your finances if you’re looking to live in the London area.
Just recently the chancellor announced a new plan to help first-time buyers onto the property ladder with just 5% deposits to secure a home. Over the past decade deposits have been held at 10% which makes buying your first property incredibly difficult if you’re currently renting and it’s going to be a struggle trying to save £20,000 while keeping up with bills and payouts. Reducing the deposits to 5% allows for the property market to become more accessible to first time buyers and could really help you get your property search on the move.
This is a scheme that has really gained momentum, particularly throughout the South East. Shared Ownership allows you to part buy part rent a property and so you can get onto the property ladder with paying an even smaller deposit and taking out a very manageable mortgage. These homes are new developments and are located right across the London region from the London Docks to Ebbsfleet and Kent .With a whole host of properties to choose from including 3 bedroom houses to 1 bedroom city apartments, there is something for everyone. Shared Ownership is also an easy step by step process with Keaze.com offering an easy guide to shared ownership to help you navigate the market. And with the mayor of London being a big advocate of the scheme through his Homes for Londoners campaign, with shared ownership, you know you’ll be in safe hands.
So whether you have a good feeling about this year, your bank account is ready to be harvested and you can’t wait to find your own happy spot on the property ladder or you’re only just beginning your journey, take advantage of what 2021 has to offer and you may be a lot closer than you think when it comes to buying a property.