August 4, 2020
The Help to Buy scheme, an arrangement where the government lends first-time buyers and existing homeowners money to make purchasing a newly-built home more affordable, was due to officially end in March 2021 with new homes needing to be finished by the end of December in order to qualify for the support. However, because many construction sites were effectively shut down for weeks due to the covid-19 lock down, this has now been extended by two months.
This means new-build homes now have until 28th February 2021 to be completed in order for purchasers to benefit for the Help to Buy scheme. However, legal completion of purchases is still required by 31st March 2021 in order to be eligible for the scheme, though extensions until the end of May will be granted in certain cases for those who had a reservation in place before 30th June.
Before the announcement, thousands of families were facing severe disappointment as the delays to construction meant their new homes would not have been ready in time to fulfil the deadline required by the Help to Buy scheme. However, with this new two month extension in place, those families will still be able to buy their new home.
Housing Minister Rt Hon Christopher Pincher MP said the “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 positive effects of this announcement will also extend beyond those purchasing their own property. It will help to support the local job market and the wider economy by ensuring the construction and property industry keeps moving and fulfilling its capacity. The current Help to Buy arrangement is due to be replaced by an updated scheme on 1st April 2021 that will introduce property price caps and be restricted to first-time buyers.
If you’re looking to sell your home or are searching for your dream property, contact the expert estate agents at Chimneypots today on 01489 584298. Our friendly team of estate agents has years of experience successfully selling properties across Hampshire and Dorset as well as helping people find their perfect home.