THE HELP TO BUY SCHEME IS CHANGING

HERE’S WHAT YOU NEED TO KNOW

Since its launch in April 2013, the Government’s hugely popular Help to Buy: Equity Scheme has enabled the sale of hundreds of thousands of properties, helping buyers to get a foot on the property ladder.

The Government’s changes to the current scheme will come into effect from April 2021 to March 2023 and will see a new Help to Buy: Equity Loan scheme aimed specifically at first time buyers.

So what does this mean for you?

First time buyers only

From its introduction onto the market in 2013, the Help to Buy scheme was open to anyone who wanted to purchase a new build home but who was unable to do so because they didn’t have a big enough deposit saved. The equity loan came into force to plug this gap.

The loan allowed applicants to borrow up to 20% of the cost on homes up to £600,000 (40% in London), resulting in the need for a 5% deposit (as opposed to the regular 10%), and a 75% mortgage to make up the remaining purchase price.

From April 2021, only first time buyers will be able to apply for a loan and the £600,000 price limit will be reduced everywhere across England, with the exception of London.

Price caps

New regional property price caps have been put into place to ensure that the scheme reaches people who need it most. These caps differ across England and are based on the average property price in a specific area.

All areas are listed below:

  • North East Chevron Down IconIcon set Chevron Down

    Maximum property price - £186,100

  • North West Chevron Down IconIcon set Chevron Down

    Maximum property price - £224,400

  • Yorkshire and the Humber Chevron Down IconIcon set Chevron Down

    Maximum property price - £228,100

  • East Midlands Chevron Down IconIcon set Chevron Down

    Maximum property price - £261,900

  • West Midlands Chevron Down IconIcon set Chevron Down

    Maximum property price - £255,600

  • East of England Chevron Down IconIcon set Chevron Down

    Maximum property price - £407,400

  • London Chevron Down IconIcon set Chevron Down

    Maximum property price - £600,000

  • South East Chevron Down IconIcon set Chevron Down

    Maximum property price - £437,600

  • South West Chevron Down IconIcon set Chevron Down

    Maximum property price - £349,000

Let us help you find your New Home

 Hamptons has an impressive range of New Homes across England to suit all requirements. Our experienced team will be able to help you find your dream home and answer any questions you might have.

Click here to view our New Homes please visit or email newhomes@hamptons.co.uk.

Click here or full details on Help to Buy please visit.