On 31st July 2020, the Government announced that the deadline for the Help to Buy scheme would be extended by two months from December 31 2020 to 28 February 2021.
The decision was made as thousands of new house builds remain incomplete due to construction delays amid the coronavirus lockdown, preventing property sales from being finalised.
The Home Builders Federation (HBF) revealed that over 18,000 property transactions could fall through if the deadline wasn’t extended.
Homes England, the government housing accelerator, will be working with existing customers who already had a reservation in place before 30 June.
Those who have experienced severe delays may be given until 31 May 2021 to complete the sale.
Housing Minister Rt Hon Christopher Pincher MP said:
“Today’s announcement will help provide certainty and assurance for Help to Buy customers whose new homes have been delayed due to coronavirus and affirms the government’s commitment to helping more people to own their own home.”
What is Help to Buy?
The current Help to Buy scheme was implemented in 2013 and provides an interest-free loan for 5 years from the government.
This covers up to 20% of the property purchase price and up to 40% in London. This reduces the amount required for a deposit.
Pincher says that over the last decade over 640,000 families have been helped with home ownership through government support, including the Help to Buy and Right to Buy schemes.
A new Help to Buy scheme?
From 1 April 2021, a new version of the scheme will be implemented to introduce property price caps for first-time buyers.
This is to support people getting onto the housing ladder and targeting government objectives to get people off the streets and have a safe place to call home.
To facilitate more new builds and help small developers, £450 million will be put into the Home Building Fund.
The scheme will continue until March 2023 with no plans for further extensions.
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