Although Help to Buy will be in effect until 2023, there will be new restrictions applied in 2021 that could exclude 38% of the homebuyers who used it this year.
The Help to Buy end date is in 2023 but starting in 2021 it will be available only to first-time buyers and for homes with a market value up to the price cap for new regional properties.
These caps are set at 1.5 times the regional average first-time buyer price currently forecast, with a £600,000 maximum in London. After March 2023, the government will not be introducing another loan scheme like Help to Buy.
HBF representative Steve Turner said that the impact of these new restrictions on scheme sales in various locations needs to be understood. HBF will work with lenders to make sure that affordable high loan to value mortgages are ready in time for the Help to buy end date.
The document stated that since the scheme was launched in 2013, market conditions have improved. There is also an increasing number of high Loan to Value products accessible to first-time buyers, and the supply of available housing continues to go up.