The government has extended the deadline of its current Help to Buy scheme so that those buying via its equity loan scheme can complete their purchases if there has been a delay in construction due to Covid.
Agents and developers selling new homes via the Help to Buy scheme had faced seeing thousands of deals fall apart under the original deadline.
Existing rules had stipulated that properties had to be finished by December in order to be included within the current scheme, but this has now been extended to 28th February 2021, although transactions will still have to be concluded by the original completion date of 31st March 2021.
The extension also only includes those home buyers who had made a reservation prior to 30th June, although the government’s housing agency Homes England is to work with those affected to ‘assess their situation’ and, in some cases, grant a further extension to 31st May 2021 to legally complete.
Despite the extension of the current system, the government says its new Help to Buy scheme, due to start on April 1st next year and run for two years, will not be extended.
It is slimmed down version of the currently scheme and is to include only first time buyers and employ property price caps.
“Today’s announcement will help provide certainty and assurance for Help to Buy customers whose new homes have been delayed due to coronavirus and affirms the government’s commitment to helping more people to own their own home” says housing minister Christopher Pincher (left).