Posted on 19th February, 2021

Help To Buy is Extended

By Laura O'Sullivan

The deadline to buy a home under the current Help to Buy scheme has been granted a two-month extension.

Help to buy has helped over 278,000 homeowners with affording a deposit on a newly built home. However, the effects of the first national lock down on construction can be felt. Delays due to COVID means more than 16,000 sales are at risk. Some construction firms have even reported delays of up to eight months.

The Scheme

The equity loan scheme allows households to receive an advance from the government to help pay for a deposit. This allows people to pay just a 5% deposit towards a home. The government loan is also interest free on the first five years. 

Changes

In a statement, Homes England said: “Help to Buy will end on 31 March 2021, but homebuyers using the current scheme will have more time to complete their purchase. We are extending legal completion to 31 May 2021 due to delays caused by coronavirus. This allows an extra two months for homebuilders to complete the build and for homebuyers to legally complete and get the keys to their home.”

It added that “there will be no more extensions, so we are asking homebuilders to continue to build at pace”.

The Government further says that “if buyers cannot meet the legal completion by 31 May 2021, their homebuilder must unconditionally release them from the contract and refund the reservation fee.”

The New Help to Buy

From April 1st 2021, new home completions will only be available to first time buyers.

Regional price caps will be brought in based on local markets. This means there will be a price limit on the house you would like to buy depending on where in England it is.

Click here to read more.

Wavensmere Homes

Help to Buy is available at Nightingale Quarter, Derby. Phase One has officially sold out with Phase Two following closely behind. Contact us for more information about the houses available on this development.

Read more about our developments here.

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