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.