The Autumn Budget delivered some good news for Britain’s housebuilders as it was confirmed there would be an extension of a revised version of Help to Buy until March 2023.
The decision has been widely welcomed by the market. Barratt Developments’ chief David Thomas called the move to extend the home loans scheme for first-time buyers “positive”.
Aidan Sutton, partner at PWC, said the update is a “boon for the UK’s housebuilders who have benefited so much from this measure so far”.
The scheme, launched in 2013, had been due to end in April 2021.
But the extended scheme will be more restrictive than the current one.
Firstly, it will be limited to first-time buyers.
Secondly, the country-wide £600,000 cap will be dropped and replaced with a price cap depending on where you live.
Visionary Finance Managing Director Hiten Ganatra said: “The extension provides housebuilders with some certainty. The scheme has been incredibly successful and has allowed huge investment since it was launched, getting builders building, and buyers buying.
“I still think there are other ways the government could extend Help to Buy. For example, I have long argued for it to be available on second properties, something I believe would lead to a more balanced housing market.”
The Government will have lent £22bn under the scheme to 360,000 homeowners by April 2021.
However, this could be the last announcement we will hear from a Chancellor on Help to Buy before wrapping it up as the scheme will not be extended again.
Budget documents said: “The Government does not intend to introduce a further Help to Buy Equity Loan scheme after March 2023.
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