Government extends Help to Buy scheme due to lockdown delays
The government has extended the Help to Buy scheme due to construction delays during the coronavirus pandemic.
The deadline for homes to have been finished in order to comply with the equity loan scheme has been extended from this December to 28 February next year.
The cut-off date for legal completion of the sale is 31 March 2021.
The closure of construction sites during the coronavirus lockdown led to delays, meaning many properties could have been built too late for the original December cut off.
Help to Buy allows buyers to pay for a new-build home with a deposit as small as five per cent, with the government providing a 20 per cent loan, or 40 per cent in London.
Homes sold through the scheme have accounted for a large chunk of UK housebuilder sales since it was set up seven years ago.
The government also announced that Homes England will work with buyers that had a reservation in place before 30 June to assess their situation on consider an extension, giving them until 31 May 2021 to legally complete if necessary.
A new Help to Buy scheme will be launched on 1 April next year, running until March 2023. The new scheme will introduce property price caps and is restricted to first-time buyers only.
Housing minister Christopher Pincher said: “This government is committed to helping a new generation to realise their dream of home ownership, and since 2010 we’ve helped more than 640,000 families into home ownership through our support including Help to Buy and Right to Buy.
“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.”