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Budget 2009: Residential Property

Key Measures of Budget 2009 relating to residential property;

• First time buyer mortgage interest relief is being increased from 1 January 2009 from 20% - 25% in years 1 and 2, and 22.5% in years 3, 4 and 5. The additional will be available to new first-time buyers and first time buyers who have bought a house in the last four years.
• Non-First time buyer mortgage interest relief is being introduced from 20% to 15% from 1 January 2009.
• The existing local authority mortgage scheme is being extended by increasing the maximum loan available to borrowers. This has been rebranded as the HomeChoice Loan, which will provide up to 92% of the market value of a property purchased, to a maximum of 285,000, with a maximum loan term of 30 years. Home Choice Loan will only be available for newly built homes.
• A single government Equity Initiative is also being introduced, where the State will take an equity share in the purchases of an affordable home. This initiative is intended to replace a range of affordable housing schemes currently in operation. Full details of this scheme are yet to be provided.
• Stamp Duty on residential property remains unchanged.

Source: Hooke & McDonald