The stamp duty holiday has a “huge impact” on transactions as affordability is underpinned by lending according to Steve Goodall, managing director of e.surv.

Goodall went on to say that while homebuyers can borrow against the property price, they cannot use finance to fund transaction costs.

He said: “The extension of the stamp duty holiday should help transactions currently in progress to complete.

mortgage products drop

Average house prices marginally drop in February

In the Spring Budget, Chancellor Rishi Sunak revealed that the stamp duty holiday would be extended until 30 June.

After which a taper will be place, with the SDLT threshold reduced to £250,000 until the end of September, only returning to the usual level of £125,000 from 1 October.

In addition, Sunak launched a Mortgage Guarantee Scheme, where the government will offer incentives to lenders in order to bring back 95% LTV mortgages.

Goodall said: “The new availability of government guaranteed 5% deposit mortgages will really help some buyers bring their home-buying plans forward and offer a helping hand to borrowers wanting to trade up.”

However, he believes that subsidising borrowing will not fix the supply issue facing UK housing, but it will help support house prices.

He added: “The government clearly understands the importance of the housing sector to the broader economy and supports homeowners.

“Homeowners simply need to use this help and our professional expertise to make the best buying decisions.”