By Frances Traynor
11th December 2017
Wed 22 Nov 2017 by Frances Traynor
The Government has moved to calm fears in the construction industry that its Help to Buy equity loan scheme is to finish early. The Department for Communities and Local Government has confirmed the scheme will continue to run until at least 2021.
The statement from the DCLG this week followed media speculation that the Government could scrap the scheme early with the share price of some of the UK's major house builders falling sharply after the media reports.
The Help to Buy equity loan scheme allows home buyers, particularly first-time buyers, in England to buy a newbuild home of up to £600,000 (up to £300,000 in Wales) with a deposit of 5 percent, with the Government providing up to 20 percent (or 40 percent if in London) of the rest of the purchase price.
Are you ready to get a conveyancing quote?
There is no obligation, and you will see your quote online rather than having to wait for an email or call. We offer a ‘no completion, no fee’ guarantee should you instruct through Homeward Legal.
The statement from the DCLG said: "We remain committed to the Help to Buy equity loan scheme to 2021, ensuring it continues to support home buyers and stimulate housing supply.
"The government also recognise the need to create certainty for prospective home owners and developers beyond 2021, so will work with the sector to consider the future of the scheme."
Since its introduction in 2013, around 120,000 home buyers have used the equity loan scheme to buy their first home. Around 38 percent of purchases across England and Wales are financed through the scheme.
Ask a Solicitor