The UK government’s Help to Buy mortgage scheme has helped almost a quarter of a million homebuyers since its introduction in 2013.
The scheme, open to buyers of new homes in England and Wales, provides the buyer of a newly constructed home with a government equity loan of up to 20% of the property’s value (up to 40% in London), subject to a cap amount. This enables buyers to get into this market with as little as a 5% deposit.
The government had intended to abolish the scheme completely in 2023, but are now being asked to reconsider in the light of current events.
It is argued that the scheme, previously due to first be restricted to first-time buyers only in 2021, should remain in place to help support the new homes market and thus the nation’s housebuilding industry during and after the current Covid-19 crisis.
Many experts argue that the economy is going to need all the help it can get in the coming months. Furthermore, many home sales that might otherwise have been completed by now have, in some instances, been delayed by the challenges the ‘lockdown’ has brought to the process. This, coupled with current uncertainty, makes a strong argument amongst some for retaining buyer assistance, at least in the short term.
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