green deal

Government’s New Green Homes Grant

The government’s new Green Homes Grant is part of the Government’s £3 Billion ‘Green Investment’ package which was announced by Rishi Sunak in the 2020 summer statement. The £3 Billion investment is aimed at improving energy efficiency and also to help stimulate the economy post-Covid19 lockdown.

The government initiative will start in September 2020 and will allow homeowners to apply online to receive help from the government in the form of vouchers to pay for as much as ⅔ of the expenditure incurred for work such as double glazing, insulation, the installation of heating systems, draft proofing and the installation of renewable energy.

Vouchers will be available for up to £5,000, with the poorest homes sometimes eligible for vouchers of up to £10,000.

In order to qualify for this help you must first request an assessment from a Green Deal Assessor.

The assessor will consider the following when making his/her assessment;

  • Whether you own or rent the property
  • your home is a listed building, in a conservation area, built before 1900 or constructed in a non-traditional way
  • there are access issues, such as access to your loft
  • you can provide bills showing your recent energy use
  • When the assessor visits

You may be asked:

  • how many people live in your home
  • what type of heating and appliances you use
  • how often you use your heating
  • what energy-saving measures are already installed
  • After the visit

You’ll get a document, called a Green Deal advice report, that contains:

  • an Energy Performance Certificate (EPC) that rates your home for energy efficiency
  • an occupancy assessment that measures how much energy you and other occupiers are using
    improvements your assessor recommends
  • an estimate of the money you could save on your annual energy bills
  • a statement on whether the improvements will pay for themselves through reduced energy costs

A Green Deal advice report is valid for 10 years, or until you make changes or energy saving improvements to the property, for example you build an extension or change the windows.

uk chancellor Rishi Sunak

Stamp Duty Holiday – Stamp Duty Scrapped On Houses Under £500,000

The chancellor has announced a temporary holiday on stamp duty up to £500,000 as part of a number of measures to help stimulate the economy. We have listed below the key facts following this announcement.

Prior to the announcement In England and Northern Ireland stamp duty was paid on land or property sold for £125,000 or more. First-time buyers paid no tax up to £300,000 and 5% on any portion between £300,000 and £500,000. For people who have bought a home before, stamp duty rates are 2% on £125,001-£250,000, 5% on £250,001-£925,000, 10% on £925,001-£1.5m, and 12% on any value above £1.5m. Following the decision no stamp duty will be paid on purchases up to £500,000

Prior to the chancellors decision someone purchasing a property at £495,000 would pay £14,750 in stamp duty, a first time buyer would pay £9,750. Assuming completion takes place before the 31st of March 2021 the stamp duty is now zero.

People buying second homes and buy-to-let properties will also benefit, but will still have to pay the 3% extra duty due on the entire price.

The holiday applies from the 8th of  July, which unfortunately means if you completed on your property purchase yesterday or before you will have to pay the full usual stamp duty.

For homes costing more than £500,000, buyers will pay 0 % on the first £500,000, five per cent between £500,001 and  £925,000 and 10 per cent between £925,001and £1.5 million. This increases to 12 per cent for homes costing more than £1.5 million.

With 81% of all residential property stock for sale in England priced under £500,000 this could be a real boost the housing market, although with lenders still reluctant to release 90 and 95 percent products many first time buyers may not be able to take advantage of this offer. Fortunately there are some excellent schemes available to help buyers purchase their first home and your friendly Blue Q Mortgage Adviser will be happy to discuss these with you.