I recently met with a couple of first-time buyers who told me they were waiting for “the effects of the budget” before committing to buying so here is a quick note to clarify:
It was announced in the Budget that mortgage interest relief will continue to be applicable for seven years for all qualifying loans taken out before 1st July 2010, and that transitional arrangements will be put in place for qualifying loans taken out between 1st July 2011 and the end of 2013. In addition, those people whose entitlement to Mortgage Interest Relief is due to expire in 2010 or after will now continue to receive relief up to the end of 2017.
The government has committed itself to a new property tax at some point in the future, but failed to take any positive steps towards its introduction for example, by abolishing stamp duty on residential property transactions and paving the way for a new wider based residential property tax. Moreover, the Minister for Finance failed to revise downwards the current rates of stamp duty for residential and non-residential property transactions, as was expected in order to provide some stimulus to trading in the property market at the current time.
All in all, nothing to excite any prospective buyer or investors, but remember, there is as much opportunity to buy well today as there was to buy badly in boom times (perhaps moreso!). Timing is a factor to be considered but it is only one factor, it is more important to negotiate a great deal, so if 2010 is the year for you to buy, talk to your local buyers’ broker.