UK Chancellor in danger of stoking a short-lived mini housing boom

Published on March 4, 2021

UK Budget 2021 - Chancellor in danger of stoking a short-lived mini housing boom

Professor Michael Ball comments on the housing market announcements made by the UK Chancellor during his Spring Budget 2021 speech. 

On March 3 in his Budget speech, Chancellor Rishi Sunak confirmed an extension to the stamp duty holiday plus an additional mortgage guarantee for first time buyers.

Since the end of the first lockdown, parts of the housing market have seen almost frenzied activity. Those who did not lose out from the pandemic now have higher savings, which they unsurprisingly are directing at the housing market in efforts to gain from low mortgage interest rates and the Chancellor's tax breaks. This has pushed up house prices, with the main beneficiaries being sellers and house builders, and has been causing chaos in conveyancing.

So, why does the housing market need even more pumping up now? The controversial cliff edge of the buying deadline has now been pushed into the summer, but even more will be waiting with bated breath around the date. What then?

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