Help to Buy has already helped 200,000 people onto the property ladder, and now another 135,000 house-hunters could turn their dream of home-ownership into a reality with the government’s latest pledge.
In its announcement this weekend, the government said that an extra £10bn would be invested in Help to Buy, taking the ever-popular scheme beyond its current end date of 2021.
Many industry experts had thought that Help to Buy could be closed early, so the surprise announcement is welcome news for homebuyers and industry alike.
Details of the extra funding will be revealed later this year at the government’s Budget on November 22. But for now, here’s what the Help to Buy boost means for you.
A Help to Buy boost is undoubtedly good news for first-time buyers, who make up the core of the scheme’s customers. In fact, one in 12 of all first-time buyers use Help to Buy.
People who would otherwise be priced out of the market can buy a new-build home with only a 5 per cent deposit, with the government offering a 20 per cent loan to help secure the purchase.
Many young people are benefiting from this already. Currently only one in five people aged 25 own a property compared with one in two in the 1990s, according to the Local Government Association. With more funding becoming available, ‘generation rent’ can start becoming homeowners sooner.
Second or third-time buyers
Most people assume that Help to Buy is only for first-time buyers, but homeowners looking to upsize or relocate into a new-build are also eligible for the scheme.
A £10bn boost essentially means more loans being available and more choice of new-build homes to move into. So if you’ve already got your own home and will be going house-hunting, the coming years could give you a better diversity of locations, sizes, layouts and styles to consider. Of course, with the scheme being so competitive, make sure you’re ready for your application.
Help to Buy is good news for many homeowners looking to sell-up and move, as it is keeping demand for houses high and making house prices buoyant.
While the scheme doesn’t directly benefit homeowners, in tough economic times it’s good to know that you can rely on a good return when selling your home.