First Time Buyer
Welsh government extends Help to Buy until 2025
In a written statement about its future by Julie James, minister for climate change, described the scheme as “an important source of support for the housing industry and supply chains”.
Applications for Help to Buy in Wales were set to end in March 2023 but have now been extended by two years. The price cap will also rise from £250,000 to £300,000 as of April 2023 which James said was “in line with increases in average house prices in Wales”.
She added: “It is important to ensure that the extension to the scheme takes account of changes in the housing market, the impact of the current economic climate on potential homeowners and the housing industry.”
James said the extension to the scheme had been developed with the support of UK Finance, the Home Builders Federation, the Federation of Master Builders and the Development Bank of Wales.
She said she wanted to ensure the scheme was relevant and targeted to those who need it. James also announced there would be research into the future needs of homebuyers and how Help to Buy can assist those needs, which will inform the government’s support for people buying a home.
Help to Buy in England
Earlier this month in England, the government extended the housebuilder completion deadline for Help to Buy by a month in certain circumstances to 31 January 2023.
The Help to Buy Equity Loan allowed people to buy a new-build property with a minimum of a 5% deposit and to use an equity loan of up to 20% of the purchase price (40% in London). The loan is interest-free for the first five years.
Help to Buy closed for new applicants on 31 October with developers originally having to finish building your home so it’s ready to live in, and it must receive a new-home warranty / building regulations certificate by 31 December 2022.
The legal completion deadline is the 31 March 2023, which is the last date you and your homebuilder can legally complete the purchase of your home.
You’re expected to have your keys by 6pm and if you don’t complete by this date, you won’t be given the equity loan.
The equivalent scheme in Scotland has already closed to new applicants.
Related: See End of Help to Buy: 10 alternatives for first-time buyers for more information.