With the delays on building new homes during the pandemic, the Government have confirmed an extension of the Help to Buy scheme. Extending the equity loan scheme beyond December 2020 will go a considerable way to help support the housing market. We take a look at the scheme as it was before, and the plans to extend it.
The Help to Buy scheme
The Help to Buy equity loan scheme was set to end at the end of March 2021. The scheme helps those with only a 5% deposit, get on the property ladder by buying a new-build home. The Government lends up to 20% of the property price (40% for homes in London); this is an equity loan which comes interest-free for the first five years. The remainder of the property is covered by a mortgage. With the scheme previously set to end in March, property transactions would need to be agreed by the end of this year, December 2020. There were always plans to replace the current scheme with a new one, to run from April 2021 through until March 2023. The new version of the scheme, when it starts, will only be available to first-time buyers and will feature regional property price caps.
Why the need for an extension?
Quite simply, the pandemic led to a complete standstill in the development of new homes. It’s reported that thousands of homebuyers were expected to agree purchases using the scheme, in time for the deadline. They were at risk of missing out on the scheme all together with the lockdown causing delays to the construction of their new homes. The scheme has supported many first-time buyers to get onto the property ladder. And while a new version of Help to Buy is due in April 2021, there’s still need for certainty for all parties. And that includes the developers, who need the assurance to fulfil the homes on the planned sites.
A short extension to the scheme
We were never expecting to see anything radical with the extension to the Help to Buy scheme. And as it’s been confirmed this week, there has been a short extension to it. This works in line with housebuilders, whose timetables for completion were affected by the lockdown. Now, home builders will have until 28th February to finish building the properties eligible for the scheme. It’s positive news for homebuyers who were at risk of having their purchase under the scheme thwarted. They are also facing a more limited choice of high loan-to-value mortgages since the pandemic struck. More than ever, the Home to Buy scheme will be a vital support to those with smaller deposits, looking to buy a new home.
Developments offering Help to Buy across the country
There are many developments across the country where Help to Buy is available to those looking to buy a new-build home. Some of these include…
Redrow’s development at Kings Moat Garden Village in Chester, which featured in our recent article about New Villages. This innovative garden village concept features a range of three and four- bedroom homes just two miles south of Chester city centre. Proving to be very popular with buyers, the self-contained development will have shops, schools, community centres and plenty of green spaces for residents to enjoy. See Kings Moat Garden Village in Chester here.
Further South, Buckton Fields from Martin Grant Homes is a development of high-spec two, three, four and five-bedroom homes in the Northamptonshire countryside. Properties here have been designed with plenty of attention to detail, to a superb specification. And from a location perspective, the development is within easy reach for those looking to commute to London or Northampton.
Discover Buckton Fields here.
Dunstall Park, a new development from David Wilson Homes in Tamworth. The development of three, four and five-bedroom homes overlooks not only the River Tame, but Tamworth Castle too.
Clever design, spacious living and easy access to major cities are all benefits of buying a new home at Dunstall Park. Find out more about the development, and the homes available here.
We have links to numerous new-build developments offering Help to Buy across the country. Start your search for your ideal new home, in your perfect new location with us right here.