The deadline for the homes to have been finished in order
to comply with the equity loan scheme has been extended
to ensure customers do not miss out if there has been a
delay in construction due to the pandemic.
Under the current scheme, new homes would needed to have
been finished being built by the end of December – the
extension will mean the deadline will now move to 28
February 2021, helping thousands of customers to get the
keys to their new home. The deadline for the legal
completion of the sale will remain the same – 31 March
2021.
The government is also announcing an extra measure to
protect existing customers who have experienced severe
delays as a result of coronavirus.
Homes England, the government’s housing accelerator, will
work with those who had a reservation in place before 30
June to assess their situation and look to provide an
extension where necessary. In which case, they will have
until 31 May 2021 to legally complete.
Separately, the government’s new Help to Buy scheme,
which will replace the current scheme, will come into
place from 1 April 2021 and run until March 2023 as
planned and there are no plans for further extensions.
The new scheme introduces property price caps and is
restricted to first-time buyers only, supporting people
onto the housing ladder.
Building the homes the country needs is a priority for
the government to ensure everyone can access a decent,
secure place to call home, and to support our recovery
from the impact of coronavirus.
That’s why we’re supporting smaller developers with an
extra £450 million through the Home Building Fund,
providing £400 million to build new homes on brownfield
land and have introduced new laws to speed up delivery.
The government continues to listen to Help to Buy
customers and the property industry to understand the
challenges and opportunities they face.
Housing Minister Rt Hon
MP 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.
The Help to Buy equity loan scheme has helped more than a
quarter of a million people to buy a home. Since the
start of the scheme on 1 April 2013, 272,852 property
sales have been completed.
Help to Buy equity loans provide a low-interest loan
towards your deposit. Customers need a 5% deposit, and
the government lends up to 20% of the value of the home
(up to 40% of the value if you are purchasing in London).
This announcement applies to the scheme in England, which
is administered by the UK Government, and not to similar
schemes in Northern Ireland, Scotland or Wales.
