It is fair to say we can all do with some help from time to time, and this is certainly the case in the housing market.
There has been a lot said about the benefits of the stamp duty holiday. There is no getting away from the benefits associated with saving up to £15,000 on stamp duty fees. However, there is a feeling some buyers are more likely to benefit from this saving.
Established homeowners and people buying a home in expensive areas are likely to benefit. First-time buyers feel as though the stamp duty holiday has little impact on them, but further assistance will soon be available.
Help To Buy has assisted many property buyers
The new Help to Buy: Equity Loan (2021-2023) scheme is now operational, and available for property 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
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.”
This scheme helps people step on to the property ladder
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.
At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.