Help to Buy is changing. The existing scheme will end in March 2021 and whilst it will continue, there are some key changes to eligibility which we’ve outlined below. Make sure you’re up to date so that you don’t miss out.
Remember you only have until 15th December 2020 to reserve your home using the current Help to Buy scheme.
THE BASICS
The existing scheme will continue to run until March 2021 with a new version of Help To Buy introduced in April 2021 which will run for two years, finishing in March 2023.
The Government does not currently intend to extend the Help to Buy scheme beyond March 2023.
THE DETAIL
The 2021 version of the scheme has been updated and designed to ensure Help To Buy funding goes to those who need it most. To achieve this aim, the new 2021 version of Help To Buy will be available exclusively to first-time buyers (it is currently available to anyone) and there will be a new regional property price cap (currently capped at £600,000 outside of London).
PRICE CAPS
The new regional property price caps are shown below. They are set at 1.5 times the current forecast regional average first-time buyer price, up to a maximum of £600,000 in London.
Price caps for properties eligible for Help To Buy from April 2021 to March 2023 are:
North East – £186,100
North West – £224,400
Yorkshire and The Humber – £228,100
East Midlands – £261,900
West Midlands – £255,600
East of England – £407,400
London – £600,000
South East – £437,600
South West – £349,000
Source: HM Treasury analysis
THE POSITIVES
Whilst it is great news that a version of Help To Buy will be available for an additional two years; the current version can definitely help more people, not only to take their spot on the property ladder, but to purchase a home of a higher value if required too.
It’s not too late to take advantage of the existing scheme – so long as you have reserved your property by 15th December 2020. And with mortgage rates still incredibly competitive as Lenders vie for market share, NOW is the time to buy!
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