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Budget March 2010 - housing

  • Published: Wednesday, 24 March 2010

Budget March 2010 announced a two-year Stamp Duty Land Tax relief for first-time buyers for residential property purchases of up to £250,000.

Budget 22 June 2010

What is the Budget?

Find out what the Budget does and what takes place on the day

The March 2010 Budget was the final Budget for the last Labour government. George Osborne, Chancellor of the new coalition government, delivered his first Budget on Tuesday 22 June 2010. The new Budget may affect some of the information below. To read about the June Budget, click the orange button.

Stamp Duty

Stamp Duty holiday for first-time buyers

The government has announced that the Stamp Duty threshold for first-time buyers will be raised from £125,000 to £250,000 for this year and next. This applies for purchases of residential property where the purchaser intends to occupy the property as their only or main home. The new relief is available for purchases where the effective date (normally the date of completion) is on or after 25 March 2010 and before 25 March 2012.

New rate for expensive properties

In order to offset the cost of this relief and to sustain the public finances in the longer term, Budget 2010 also announces a new 5 per cent rate of stamp duty for transactions over £1 million from April 2011.

Mortgage lending

An agreement has been signed with Lloyds Banking Group and The Royal Bank of Scotland to lend £105 billion to homebuyers and businesses over the next 12 months.

Budget 2010 announces that the Standard Interest Rate used to calculate Support for Mortgage Interest (SMI) will be maintained at 6.08 per cent for a further six months until December 2010.

Housing Benefit

From October 2011, the highest rents across the country, including the most expensive 8 per cent of properties in London, will be excluded from the Housing Benefit calculation in each area.

This is to make sure that Housing Benefit does not pay for people to live in properties that would be unaffordable to other low-income households.

Inheritance Tax

The Inheritance Tax threshold will be frozen until 2014-15.

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