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Real Estate Developments in the Budget 2021

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3rd March, 2021

Spring is in the air (at least it was earlier this week) and the changes outside reflect that the world of property is on the move too.

Here are some recent real estate related developments in the budget, coronavirus related property issues and for post-Brexit Britain.

Budget

The Chancellor announced in the budget speech an extension of the stamp duty land tax holiday so that nil rate band for residential properties will be £500,000 until 30 June 2021.  Thereafter, it will £250,000 until 1 October 2021 when it returns to £125,000.

Further help was announced for first-time buyers who only have a 5% deposit with a government guarantee on mortgages.  Many big lenders are already backing the scheme.

Also, in the budget, the business rates holiday will continue at 100% for qualifying businesses in retail, leisure and hospitality businesses until the end of June 2021.  For the remaining 9 months of the tax year, there will be 2/3 reduction in rates for those qualifying businesses that had to close due to coronavirus up to a value of £2 million with a lower cap for those business that were able to stay open.

Coronavirus Issues

The mortgage payment break to allow up to a 6 month holiday for residential mortgage payments is continuing and any applications for a new/second payment holiday have to be made by 31 March 2021.  After 31 March 2021, an existing payment holiday can be extended until 31 July 2021 so long as you have not had more than 6 months of support and there has been no break-in that support.

On 29 January 2021 the Court Practice Directions were amended so the temporary changes to possession proceedings were extended until 30 July 2021.  In respect of claims brought before 3 August 2020A, a reactivation notice has to be served by 30 April 2021.  If no reactivation notice has been filed by 4.00 pm on 30 April 2021, the claim will be automatically stayed. No reactivation notice is required, however, where a final possession order has been made.

For possession claims brought on or after 3 August 2020, the claimant will need to produce a notice setting out the knowledge that they have as to the effect of COVID-19 on the defendant and their dependents,

Post-Brexit Britain.

The Chancellor announced new freeports to boost post-Brexit trade and industry.  These will be UK wide special economic zones with simpler planning regimes, funding for infrastructure and cheaper tariffs and taxes.  The first 8 regional locations in England are East Midlands Airport, Felixstowe & Harwich, Humber. Liverpool City Region, Plymouth, Solent, Thames and Teeside.

Following the end of the Brexit transition period, the Environmental Land Management Scheme (“ELMS”) for agricultural land moves into a national pilot phase for the Sustainable Farming Incentive being one of the three tiers of the ELMS.  This new support is being phased in as the Basic Payment Scheme begins to be phased out over the next 7 years.

Emma McGlinchey

Real Estate

Partner
Email: [email protected]
Tel: 01244 405 442

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