Deadline for Help to Buy builds extended
The government has announced that they will be extending the deadline that new homes sold under the Help to Buy equity loan scheme must be completed by.
Under the current scheme, new home builders originally had until the end of December to finish the build. The extension has pushed this deadline back to the 28th of February next year.
This should come as good news for  homebuyers worried that they could miss out on getting the keys to their brand new property if the build deadline was not met.
It’s important to remember, however, that the deadline for the legal completion hasn’t changed; it remains the 31st of March 2021. But according to the government’s website, this time limit could be extended to the 31st of May for buyers who had a reservation in place before the 30th of June 2020, and who experienced severe delays because of lockdown.
This update is only applicable to England, so if you’re using a similar scheme in Northern Ireland, Scotland, or Wales, rules will differ, so make sure to check that. We’ll try our best to keep you posted when we know of any changes.
What is the Help to Buy equity loan scheme?
Back in 2013, as a way to help more people get on to the property ladder, the government launched a scheme which makes it possible for buyers to buy a home with as little as a 5% deposit.
If you’re eligible for the scheme, and can prove you have enough saved to cover a 5% deposit, the government will provide a low-interest loan of 20% of the house price (or up to 40%, if you’re in London), and the mortgage provider will lend the remaining balance.
There are a few caveats, one of them being that it is only available for purchases of new-builds.
You can find more information on the Help to Buy England equity loan scheme here.
The current scheme is set to end on the 1st of April next year.
Is a new scheme going to replace the current one?
Yes, but it will be somewhat different than this one.
From April 2021, Help to Buy will only be available for first-time buyers, and will include variable regional price caps.
The new scheme is set to run until March 2023, and so far there are no plans to extend it beyond that.
Home-movers’ demand for new homes reaches all-time high
The government’s announcements come at a time when the housing market is bustling with activity, as a result of the demand that has been building up over the last few months.
A recent analysis of Rightmove data showed that the interest in newly built homes has more than doubled in the summer months.
The number of home-hunters looking for new homes increased by 111% in June 2020. And this shot up to a whopping 124% increase in July.
Learn more about the Help to Buy equity loan scheme in England, Scotland, or Wales.
