At Love Your Home, we know there are many challenges in the market, but there is help available for buyers. The stamp duty holiday has helped many people justify the cost of buying property, but this hasn’t been of great benefit to every property buyer.
First-time buyers have complained there hasn’t been enough help, but there might be suitable assistance on the way.
The new Help to Buy: Equity Loan (2021-2023) scheme is now operational, and available for house buyers. Homes England has stated all first-time buyers interested in new-build homes can apply for the new Help to Buy: Equity Loan scheme.
The key requirements of the Help To Buy: Equity Loan scheme are as follows:
The Government will provide buyers with up 20% of the cost of a newly built home
Property buyers in London will receive up to 40% of the cost of a new built home
Buyers will be required to pay a minimum deposit of 5%
The buyer should arrange a mortgage of 25% or more to make up the rest of the cost of the property
The equity loan is an interest-free loan for the first five years
Eligible first-time buyers can reserve their property from the middle of December 2020
Buyers will be able to collect their keys and move into their new property from the 1st of April 2021
Anything which helps more first-time buyers step onto the property ladder in London has to be of benefit. At Love Your Home, we are well aware that the London housing market is considerably different from the rest of the country. We believe that adding additional support to buyers in London is a sensible move.
Vendors should also take confidence in moves which help first-time buyers step onto the property ladder. When there is a greater number of willing buyers in the market, vendors have more prospective buyers to reach.
Housing Secretary Robert Jenrick commented: “The government is providing more ways to help families onto the housing ladder, and provide that life-changing moment when you get the keys to your own home. Alongside First Homes, Shared Ownership and our £12bn investment in affordable housing, our new Help to Buy scheme will help thousands more families take their first step into a home of their own.”
It is claimed the Help To Buy scheme has assisted more than 270,000 people to buy a home, and 82% of these buyers are first-time buyers.
Will German is the Director of Help To Buy at Homes England, and he said; “The new Help to Buy builds on this success with first-time buyers in front of mind. We’re pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them. Housing, like most sectors, has experienced a slowdown during the Covid-crisis. But Help to Buy continues to give homebuilders the confidence to keep on building at a more crucial time than ever.”
There is optimism the new Help To Buy: Equity Loan (2021-2023) scheme will assist a greater number of first-time buyers to step on to the property ladder.
We know these are challenging times for the property and rental market. At Love Your Home, we are keen to maintain a high standard of service for all our clients. As well as helping people now, we will review the changes likely to occur in the market. If you are looking to stay informed, rely on Love Your Home.