Deadline nears for Help To Buy
HELP To Buy – the Government equity scheme to help first-time buyers purchase new-build homes – is into its final countdown in England and Wales, having already closed in Scotland and Northern Ireland. But many first-time buyers are unaware that their chance of a 20 per cent interest-free government loan – 40 per cent in London – will finish on March 31 next year.
And even fewer realise that applications for Help To Buy funding can only be made on properties that will be built by December 31 this year.The March 31 deadline is for completion of sales.
“Applications for Help To Buy close at the end of this year so a home must be reserved before then to be eligible for the scheme, adding a real sense of urgency,” says James Holmear, group sales director at Redrow.
“We’d encourage anyone hoping to make the most of Help To Buy to start their searches in the coming weeks to ensure they have ample time to find and reserve a home before the scheme comes to an end, with the aim of reserving by late summer or early autumn.”
Help To Buy was launched in 2013 and has transformed the new-build property market although it was scaled back in 2021, with regional price caps introduced, and restricted to first-time buyers.
Critics claim it has helped to push up property prices nationwide but it has been particularly well-received in London and the South East, where higher prices make the 5 per cent deposit limit particularly welcome.
Lynda Clark, CEO of First Time Buyer Group, is concerned about the confusion at the end of Help To Buy and says: “There isn’t much out there in the way of replacing Help To Buy, even when you take into account initiatives like the First Steps Scheme.
“It leads me to think that shared ownership will soon be the only real avenue first-time buyers can take if they have a very small deposit and, even then, staircasing to achieve full ownership can still be a costly endeavour.”
Some developers are launching their own schemes but Clark says: “My concern is that too many different products could lead to a very overwhelming and complicated market for our least experienced and most vulnerable buyers.”
Housebuilders are now under pressure to complete new developments before the end of the year so they will be eligible for Help To Buy.
Redrow has 13 apartments available at The Mill in Maidstone, Kent, overlooking the River Medway, from £219,995 (01622 294767; redrow.co.uk) with more to be launched over the coming months with Help To Buy.
Barratt Homes has made a final release of two, three, four and five-bedroom homes at Lavender Grange in countryside near Henlow, Bedfordshire, where Help To Buy is available on homes up to £407,400 for first-time buyers.
Two-bedroom maisonettes start from £317,500 (0333 3558 500; barratthomes.co.uk ) including a private garden, carport and driveway plus electric vehicle charging point. The properties are available this summer.
And David Wilson Homes has Help To Buy available on properties up to £437,600 at its Dickens Gate development in Staplehurst, Kent, where two-bedroom houses are from £335,995.
But hurry, like so many other new developments Dickens Gate is already 80 per cent sold.