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Help to Buy Scheme Set to End in 2023

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.

Structural Defects Insurance

According to an analysis carried out by reallymoving.com, over a third of homebuyers who used Help to Buy to purchase a home this year will no longer to able to use the scheme once the new rules take effect.

Reallymoving.com CEO Rob Houghton said that an estimated 38% of people who used Help to Buy in 2018 would no longer qualify after the 2021 changes, showing that the new scheme is more targeted towards new buyers who need help getting onto the property ladder.

Despite its improvements, Mr. Houghton said he was happy to see Help to Buy being scaled back, given that the scheme potentially encourages higher prices more than it encourages new homes to be built or helping first-time buyers get on the ladder.

The data recently released by reallymoving.com indicated that first-time buyers using Help to Buy paid an average of 8% more than buyers purchasing their new homes without assistance from the scheme.

Reallymoving.com collected data from 41,000 new buyers who used its home move services. The figures suggested that those who bought a new build home without Help to Buy paid an average of £257,908 while those who used the scheme paid £277,968.

Help to Buy was introduced in 2013 to sustain the UK housing market during a period of challenge. By March 2021, the government anticipates that it will have enabled homeownership for up to 360,000 households.

Specialists in Construction Insurance

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