With so much focus on the housing market right now, it is inevitable that many people are keen to consider their options. The stamp duty holiday has created considerable interest in the property market, and many people have made a move.
However, not everyone believes the stamp duty holiday is of benefit to them when looking to buy a home.
Buyers purchasing a home in a more expensive area, or who are upscaling their home have seen a clear benefit in arranging a property move. It is fair to say first-time buyers (FTBs) haven’t benefitted to the same extent.
Help is available for buyers
This is why the news that the new Help To Buy: Equity Loan scheme, which is launching in December, is likely to be of benefit.
First-time buyers will be able to apply to the scheme from December 16th. The new scheme is solely available to first-time buyers, and it will go live in 2020, and it will remain live until 2023.
Some buyers will be in their new home as soon as April 2021
Property builders have entered contracts for the new scheme and you might have already seen marketing material for new build projects. Buyers who are eligible will be able to reserve property from the middle of December, and they will be able to collect their keys to move into their new property from the 1st of April 2021.
Will German, Homes England help-to-buy director, said: “We're pleased we can help homebuyers with smaller deposits to own a home, at a time where there are fewer options open to them. Housing, like most sectors, has experienced a slowdown during the Covid-crisis. But help-to-buy continues to give homebuilders the confidence to keep on building at a more crucial time than ever."
Housing Secretary Robert Jenrick commented: “The government is providing more ways to help families onto the housing ladder, and provide that life-changing moment when you get the keys to your own home. Alongside First Homes, Shared Ownership and our £12bn investment in affordable housing, our new Help to Buy scheme will help thousands more families take their first step into a home of their own.”
The key requirements of the Help To Buy: Equity Loan scheme are as follows:
- The Government will provide buyers with up 20% of the cost of a newly built home
- Property buyers in London will receive up to 40% of the cost of a new built home
- Buyers will be required to pay a minimum deposit of 5%
- The buyer should arrange a mortgage of 25% or more to make up the rest of the cost of the property
- The equity loan is an interest-free loan for the first five years
- Eligible first-time buyers can reserve their property from the middle of December 2020
- Buyers will be able to collect their keys and move into their new property from the 1st of April 2021
If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters West Hampstead today for all your housing and letting needs.