Help to Buy is Changing

As CG Fry & Son reports clear signs that the previously uncertain property market is starting to look more positive, the regional housebuilder is drawing attention to the fact that the Government’s Help to Buy scheme is changing. 

Caroline Hill, Sales and Marketing Director at CG Fry & Son explains, “As of March 2021, the Help to Buy scheme will come to an end for all buyers who aren’t purchasing their first home, and a price cap on the value of the properties eligible will be introduced, in the South West, that will be set at £349,000.  

“First-time buyers will still be able to access the scheme until March 2023, when it will be replaced by a new government-backed scheme to continue to assist them in getting onto the property ladder.”

Since its launch in 2013 to September last year, the Help to Buy Equity Loan scheme had seen 248,075 properties across the UK bought with an equity loan, with 81% of these purchases made by First Time Buyers.  It has also allowed existing home buyers to purchase over 46,291 homes. 

Caroline Hill continues, “We’ve found that there are still prospective home-hunters that are unaware that Help to Buy isn’t just for first-time buyers trying to access the property market.  The scheme can be used by buyers wanting to move into bigger properties.”

Properties priced below the £600,000 threshold are eligible for the scheme, which means that that many CG Fry & Son homes across the South West are available to purchasers taking advantage of Help to Buy. 

Under the current Help to Buy scheme buyers can secure their home with a five per cent deposit and a 75 per cent mortgage. The remaining 20 per cent is paid off by the Government as an equity loan, which remains interest free for five years. 

The new scheme set to replace Help to Buy, will run from April 2021 until March 2023.