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.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

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...