The UK government has extended the very popular Help to Buy scheme in England. The Help to Buy Scheme has been crucial for the UK housing market through a tough economic period instigated by the pandemic. However, remarkably, the Help to Buy Scheme has not only saved the housing market in uncertain times, but it has also created a huge rise in people buying homes all across the UK. Many people who could only dream about affording to buy a property, are now in a fortunate position to do. Younger people who once thought that they’d be renting all of their lives are now in the position to purchase a brand-new dream home. Primarily due to Help to Buy, the interest in homes has doubled in the last couple of months, with an immense increase of 124% in July 2020.
For those of you who were not previously aware of the Help to Buy scheme, it is a scheme that allows people to purchase new-builds with just a 5% deposit. The government will then provide a low-interest loan (20% of the house price, or as much as 40% if you live in London), and your mortgage provider will cover the rest. Before the government’s recent extension, it was a requirement that homes had to be built before December 2020. Now, the revised building deadline for construction companies is February 28th 2021. This is great news for thousands of new home buyers who were concerned that they would miss out on this fantastic opportunity. Though the deadline for construction completion is now February 28th 2021, the deadline for legal completion remains that same – 31st March 2021. According to the government’s website, the legal completion date may be extended to the 31st May 2021 for buyers who had reservations before 30th June 2020 or have had complications due to COVID-19.
Help to Buy is a fantastic opportunity for you to get on to the property ladder. It offers a bit of light, forward-thinking and hope, especially for young people and families. The reduced deposit requirement of 5% is much easier to get together after a little bit of saving. For more information, visit the government website. Have a mooch for new properties on the Houso App to get excited and get some ideas! Happy home hunting!