The Help to Buy scheme is ending today (31st March 2023).
What is Help to Buy?
The UK Government introduced the Help to Buy scheme to support people with purchasing newly built homes. Under the scheme, buyers were expected to have saved at least a 5% deposit, and the loan was interest-free for the first five years.
In April 2021, the scheme was restricted to first-time buyers and regional price caps were also introduced. 96% of new build homes were purchased by first-time home buyers since the scheme was first introduced in 2013. The 5% deposit also helped people overcome difficulties with buying property.
Now that the Help to Buy scheme is ending, first-time buyers will find it more difficult to get onto the property ladder. Instead, people may start to consider the option of ‘shared ownership’ to get onto the property ladder.
What are some other options now that the Help to Buy scheme has ended?
The Government has introduced the First Homes scheme. Under this scheme, first-time buyers receive an offer of new homes that have been discounted by at least 30% compared to market value. The discount is then passed on to future sales. There are conditions around the maximum value of the property (£250,000, or £420,000 in London) and the annual household income of the buyers (below £90,000).
The Shared Ownership can also be another option to consider now that the Help to Buy scheme has ended. This scheme allows buyers to purchase a share of a property and rent the remaining share of the property from a property owner or housing association. You will only be required to pay a mortgage for the part of the property you own which means you will also pay a lower deposit.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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