MEASURES to boost the housing market announced in the Budget are very welcome news for buyers and sellers in Colchester, a leading estate agent has said.

Yesterday Chancellor Rishi Sunak announced an extension of the stamp duty holiday for properties worth up to £500,000 through to June.

He also announced the nil rate band for stamp duty would be set at double its standard level, to £250,000, until the end of September.

David Boyden, managing director of Boydens estate agents, said the announcement was “much-needed” for the housing market.

He said: “The housing market generally has recovered very well and even in June it was showing signs of steady progress.

“The stamp duty holiday first came in in July and it created a very good few months for us in the property business.

“I think the fact more people were working from home and realised they might not need to go to London as much also help demand. People realised they might need an extra bedroom or an office to work from.

“The early part of this year it has been a bit of a waiting game.

“People have been waiting for the announcement in the Budget, wondering whether the holiday would be extended.

“There are a lot of people who will now get on and start thinking they need to get their property on the market.”

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Paul Smith, CEO of haart and Chewton Rose, said the extension to the stamp duty holiday combined with the introduction of a mortgage guarantee scheme will have a huge impact on those who currently rent. 

He said: “Rishi Sunak and the Prime Minister have sent a clear message to ‘Generation Rent’ to turn them into ‘Generation Buy’. 

“If people don’t get on the housing ladder now, they may well struggle in the future.

"We’ve got very high demand for property at the moment – and not enough housing stock available, and this is starting to push prices up.

“The mortgage guarantee scheme is open to everyone who can afford a deposit of 5 per cent or more, not just first time buyers, with lenders offering 95 per cent mortgages guaranteed by the Government.

"Owning a house is now within many people’s reach, whereas previously the cost of getting a deposit together, with stamp duty too, would have meant it was out of their grasp.

"They need to seize the opportunity while they still can.”

Mr Sunak also announced a new “mortgage guarantee” designed to help first-time buyers.

It means lenders who provide loans to buyers who can only afford 5 per cent deposits will receive a Government guarantee.

Most of the big UK banks have signed up and will offer 95 per cent mortgages from April.

Mr Boyden said the announcements meant the housing market in Colchester was in very good shape.

He said: “The housing market in Colchester is strong and hasn’t been as affected by the pandemic as much as we might have thought.

“We are very upbeat and these measures see us looking to the future with enthusiasm, but with caution too.”