Help to Buy Deadline Extended
Since 2013, the UK Government’s ‘Help to Buy Scheme’ has assisted over 278,000 people purchase a new build home and get onto the property ladder.
Extension of Help To Buy scheme
It was anticipated that this scheme would come to an end early this year. However, the UK Government has recently announced that the scheme will be extended until the end of May 2021.
This news will come as welcome relief to buyers who had the building of their new homes delayed because of the pandemic.
Construction workers needed to self-isolate, supply lines slowed, overseas labour may have needed to quarantine, and some traders were furloughed. These issues resulted in new build completion dates being pushed back.
What is the Help to Buy Scheme?
The Help to Buy Scheme is an equity loan assistance made available to prospective home owners by Homes England.
The scheme makes new build homes available to all home buyers. This includes those who may be constrained because of deposit requirements. However, these individuals could otherwise be expected to sustain a mortgage.
Typically, prospective home owners applying to this scheme would be expected to contribute a 5% cash deposit of the full price.
When will the Help to Buy Scheme now expire?
The Help to Buy Scheme is now set to expire on 31st May 2021.
The UK Government extended this scheme to allow conveyances (involving the use of Help to Buy) which were delayed because of Covid-19.
The initial Help to Buy Scheme (2013-2021) will gradually be replaced by a new Help to Buy: Equity Loan Scheme (2021-2023).
This new scheme only allows first-time buyers to apply for an equity loan to assist them to purchase a new build home. This type of loan is interest free for the first five years.
The Help to Buy: Equity Loan Scheme is open now for applications and is due to end in March 2023.
Stamp Duty Holiday Scheme
As it stands the UK Government’s ‘Stamp Duty Holiday Scheme’, introduced in July 2020, will also end soon.
Under this scheme, buyers were not required to pay any stamp duty on the first £500,000 of a property purchase.
Although the UK Government had the discretion to extend this scheme, no formal plans have been outlined to do this. Therefore, this scheme will expire on 31st March 2021.
Contact
Our experienced conveyancing team can take instructions from clients via telephone and video calls.
If you require assistance on buying or selling property, or on any other property matters, contact us on 0191 243 8167.
