Website of the UK government

Stamp Duty holiday

To provide continued support for homebuyers the Budget announced an extension of the Stamp Duty Land Tax ('Stamp Duty') holiday for residential properties up to £175,000 until midnight on 31 December 2009.

Around 60 per cent of purchases will be exempt from paying Stamp Duty as a result of the holiday.

• Stamp Duty (money, tax and benefits section)

Local Housing Allowance

The government is reforming the Local Housing Allowance (LHA) so that it is fairer and supports work incentives. From April 2010, households will no longer be able to keep any of the surplus if the LHA they receive is higher than their rent.

For those already receiving LHA, this reduction will not apply until the anniversary of their claim. This measure will only affect surpluses, and will not produce rent shortfalls.

• Local Housing Allowance (money, tax and benefits section)

Government package to support housing supply

A £600 million fund to kick-start housebuilding was announced in Budget 2009. It aims to deliver an additional 10,000 homes in England over the next 2 years.

This package includes £400 million to re-start stalled housing developments.  £100 million will be allocated to local authorities to build new social housing at higher energy efficient standards. 

The current economic climate continues to have a significant impact on housing supply. Additional, short-term spending during the downturn is planned to stimulate housing development as well as boost the capacity of the house building industry in the long-term.  This will drive a housing supply target of 240,000 new homes every year by 2016.

Homeowner Mortgage Support Scheme

A scheme that allows borrowers to defer part of their interest payments for up to two years has been launched.  More than 80 per cent of lenders in the mortgage market have signed up to the scheme.  The government will guarantee some of the deferred interest.

• Homeowners Mortgage Support (home and community section)

Help if you are in negative equity

The Mortgage Rescue scheme helps if you have serious difficulties making your mortgage payments. The Budget announced extra government support for the scheme.

You might be able to apply if:

• you are in negative equity (when the amount owed on your mortgage is more than the value of your home) and
• the value of your mortgage (and any loans taken out against your home) is less than 120 per cent of the value of your home
  

Check the link below for full details of the scheme.

• Mortgage Rescue scheme (home and community section)

Help for homeowners and getting on the property ladder

You will find more information and guidance if you have worries about your mortgage in the links below.

There is also information if you are thinking about buying your first home.

• Mortgage worries - get advice to keep your home (home and community section)

• Homeowners Mortgage Support (home and community section)

• Real help getting on the property ladder Opens new window