You are here: Home - Mortgages - First Time Buyer - News -

Government pledges to continue Help to Buy until 2021

Written by: Owain Thomas
The government has confirmed it will support the Help to Buy scheme until at least 2021 and will work with the industry to consider its future.

It was forced to issue the statement following reports late last week that it had begun a review of the scheme which could lead to it being ended early.

The report prompted shares in house builders to drop sharply on Friday morning as around 35% to 40% of new build homes are purchased using Help to Buy.

In its statement, the Department for Communities and Local Government (DCLG), said: “We remain committed to the Help to Buy equity loan scheme to 2021, ensuring it continues to support home buyers and stimulate housing supply.

“The government also recognises the need to create certainty for prospective home owners and developers beyond 2021, so will work with the sector to consider the future of the scheme.”

Regular reviews

DCLG added that the department regularly reviewed the Help to Buy equity loan scheme, with the last review taking place in 2015.

“To infer from this that the Help to Buy equity loan scheme will be cancelled is simply incorrect,” it concluded.

Speaking at the MyHomeMove conference in May, Barratt Homes’ head of mortgage lender relations Adrian MacDiarmid said the business was already planning developments for 2021 with the expectation the scheme would end.

“Land we are buying now we won’t be building units on until 2021 – so we’re taking decisions now based on the lack of availability of Help to Buy,” he said.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Got a prepaid currency card for your holiday? Watch out for this fee

If you’ve taken out a prepaid currency card especially for your summer holiday, make sure you know exactly if and...