Help to Buy Scheme extended to 2021
The Department for Communities and Local Government (DCLG) has announced that the Help to Buy Scheme, which was launched in 2013, is to continue until at least 2021. The news comes amid rumours that the scheme was to be scrapped, which led to shares in leading house builders falling earlier this month. The news has therefore been welcomed by many including Sarah Brooks, Residential Property Partner.
What is the Help to Buy Scheme?
If buying a newly built home under the Help to Buy scheme, the Government will lend the buyer up to 20% of the cost of the property so the buyer only needs a 5% cash deposit and a 75% mortgage. In addition, there are no loan fees on the 20% for the first five years after the property has been bought.
“The scheme was originally introduced as a way to boost the housing market, and reduce the main barrier to home ownership which was having to raise a 20% deposit on the property,” explains Sarah. “The scheme has been received well by first time buyers in particular and since launch in 2013, it has helped over 120,000 buyers get onto the property ladder.”
The future for the Help to Buy scheme?
The DCLG statement confirmed that they have committed £8.6 billion towards the Help to Buy Equity Loan Scheme until April 2021. Sarah concludes, “They also recognise the need for certainty and stability in the coming years, for homebuyers and also developers, so it is not a given that the scheme will finish in 2021. It could extend further or be re-launched in a different format to reflect the market needs at the time. It’s encouraging to see that the Government is still taking the property market seriously and continues to look for ways to support and promote home ownership.”
If you are interested in finding out more about Help to Buy, or how Warner Goodman could help you with your move, then contact Sarah or the team by emailing firstname.lastname@example.org or visit their section of the website here.
This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.