The Help to Buy scheme has helped hundreds of thousands of people purchase their properties since its launch in 2013, but it is now coming to an end.
What was Help to Buy?
Originally introduced in 2013, the Help to Buy: Equity Loan scheme was one of a range of schemes from the government to help make buying a home more affordable. It helped many to move to their dream home and offered first-time buyers a huge helping hand in getting onto the property ladder.
It allowed applicants to purchase a newly built home with just a 5% deposit, with another 20% of the property price covered by an equity loan from the government. The loan is repaid when the home is sold, and the value changes depending on how much the house price has gone up or down.
When is Help to Buy ending?
The key dates for the scheme ending are:
- 31st October 2022 - This is when you need to have reserved your new home by, and have submitted your Help to Buy application with your agent.
- 31st December 2022 - This is when your new home will have to be physically built and ready for you to live in.
- 31st March 2022 - This is when you need to have legally completed on your new home, and you should have the keys.
Why is Help to Buy ending?
When the government made the announcement in 2018 about extending the scheme, they had listed 31st March 2023 as the official end date, and since then no extension has been put in place.
What is replacing Help to Buy?
There are no plans to directly replace Help to Buy as of right now. This will just be the end of this particular scheme, and that’s it.
There is a replacement for the Help to Buy ISA that ended in 2019 called the Lifetime ISA (LISA). This ISA is available to anyone between 18 and 39, and offers a 25% bonus on your savings. You can save up to £4,000 a year (earning up to £1,000 in bonus a year!), and use the funds towards buying a home.
There are however still a huge number of schemes offered for both first-time buyers and those looking to move that can make buying a home more affordable. These vary in what they offer, who they are available to, and where they are available from. You can read more about these schemes here.
In terms of extra help for buying a home, as of September 2022* there is Stamp Duty relief available. Our article around Stamp Duty explains a lot more about what you can expect to pay for the price of your home.
There’s also Part Exchange, which Jelson Homes offer, for those looking to sell their current home and buy a new one.