Although the Help to Buy scheme was not mentioned in chancellor Philip Hammond’s speech during the Budget today, the Budget report reveals that the popular incentive will end in March 2023.
The report also details that from April 2021 until the scheme ends, different regions will have different price caps, ranging from £186,100 in the North East of England to £600,000 in London.
Kensington Mortgages new business director Craig McKinlay says: “The HTB scheme has been a helping hand for thousands of first-time buyers stepping onto the property ladder. It isn’t the only solution to solving the housing crisis, but it has supported many people on the path to homeownership.
“A guarantee of its extension to 2023 is much needed news for both developers and buyers to help with their long-term plans.”
Meanwhile, Legal and General Mortgage Club director Kevin Roberts comments: “Today’s extension of the HTB scheme to 2023 has provided much-needed clarity over the scheme. Not only do housebuilders now have more certainty for longer-term planning and building the thousands of new homes our country so desperately needs, but it also gives potential buyers who are saving for a deposit the peace of mind that they too can benefit from the scheme over the coming years.”
The government reports that since bringing in HTB in 2013, market conditions have improved immensely, citing an increased amount of high LTV product availability and greater housing supply. It adds that by March 2021, the government expects to have invested £22bn in the scheme, supporting up to 360,000 households.