Help To Buy will continue until 2023 but there is a new alternative on the horizon. Thea Carroll outlines her thoughts in this week’s Country Life
Help To Buy was launched in 2013 to help first time buyers get a foot on the property ladder. However last November it was announced that in 2023 it will be scrapped. Data shows that around 365,400 people have got themselves on the property ladder through Help To Buy. The scheme however has been criticised as some people have reportedly exploited the system (they already own a home). There is going to be a new iteration which launches in April 2021 which will be more stringent in favour of first time buyers.
Thea Carroll says that right now the Help To Buy scheme ‘…has a high barrier to entry. It’s not due to eligibility but the small print. Once you realise there is a cap of £600,000 and it’s only for new builds it limits the relevant areas and is often prohibitive in what’s available in central London. As London millennials are already contending with the biggest deficit in earnings it’s unlikely that they will be willing to add a longer to commute to their list of worries. However if you can find a scheme that works for you a new build can be very appealing on paper.”
There’s a new government initiative, Starter Homes which is in the works, offering first time buyers under 40 the opportunity to purchase new build properties at a 20 per cent discount. Properties will be capped at £250,000 outside of London and £450,000 within the capital. Applications are being taken here.
To read more pick up this week’s Country Life