Date Published 30 October 2018
The government's flagship scheme ‘Help to buy' equity loan which was due to end in April 2021 will be extended to 2023 in England but just for the first-time buyers only. This extended scheme will be more restrictive with a regional cap on the amount being introduced based on the average house price for first time buyers in each region of England.
The highest cap will be £600,000 in London & the lowest will be £186,100 in the North East, according to budget documents published by the Treasury. It will be £224,400 in the North West. A similar set of figures are likely to be announced by the Governments in Scotland & Wales in due course.
This move has been widely welcomed, it is a great help to first-time buyers. Jackie Bennett, director of mortgages at UK Finance described it as ‘vital support' for first-time buyers.
‘Last year the number of first-time buyers reached its highest level in a decade, boosted by vital schemes like the Help To Buy. This announcement provides further clarity and will bring welcome certainty to the new build housing & mortgage market,' she said.
For most prospective buyers, finding the funds for a deposit is the biggest barrier to home ownership – buyers need help to bridge this gap.