There is good news for first-time home buyers in England, as the government has proposed to extend the Help-to-Buy equity loan scheme to up to 2023.
The scheme has helped thousands of home-buyers, especially first-time buyers, to step on to the property ladder. On Monday, the government made its intention of helping first-time buyers clear by extending the scheme, which was supposed to end in 2021.
The Treasury’s decision enables home buyers to purchase newly-built homes with deposits of only 5 per cent. For the final two years (2021-23), the government will invest another £7.2bn in equity loans to home buyers and cap the prices of the homes that can be bought using its state-backed equity loans.
The highest cap will be £600,000 in London and the lowest £186,100 in the North East, according to Treasury documents. The cap on other regions is £224,400 in the North West, £228,100 in Yorkshire and the Humber, £261,900 in the East Midlands, £255,600 in the West Midlands, £407,400 in the East of England, £437,600 in the South East and £349,000 in the South West.
The stakeholders of the housing sector have welcomed the extension of the scheme. Strawberry Star is of the view that the extension of the help-to-buy scheme is an important contribution to solving the housing crisis.
The door will close on the popular Help to Buy home ownership scheme in 2023, bringing an end to a flagship loan programme