Help to Buy

Are you a developer looking for more information?

IF YOU’RE A DEVELOPER WITH A NEW HOMES SITE ON THE CURRENT SCHEME:

  • The deadline for submitting the application for Authority to Proceed on the current Help to Buy scheme was 15 December 2020
  • Build needs to be complete by 28 February 2021
  • The practical completion of a sale needs to be by 31 March 2021
  • For buyers who reserved their future home before 30 June 2020, the deadline for legal completion has been extended to 31 May
  • The current scheme comes to end on 31 March 2021 and will be replaced by a new scheme aimed at First Time Buyers only

IF YOU’RE A DEVELOPER WITH A NEW HOMES SITE ON THE 2021 - 2023 HELP TO BUY: EQUITY LOAN SCHEME:

  • The new Help to Buy scheme starts on 1 April 2021 and is an entirely new scheme which is subject to its own terms and conditions, operating procedures and regulations
  • There are a number of key points that developers need to be aware of from April 2021:
    • Help to Buy 2021 - 2023 is for First Time Buyers only
    • Anyone who has acquired a major interest in a dwelling or residential land anywhere in a world will not be eligible
    • To participate in the Help to Buy: Equity Loan 2021 - 2023 programme all developers must register with Homes England for the Help to Buy: Equity Loan 2021 - 2023 programme and enter into a Funding Administration Agreement with Homes England
    • In Year 1 (1 April 2021 – 31 March 2022) the development must have reached Practical Completion by 31 December 2021
    • In Year 1 (1 April 2021 – 31 March 2022) the development must have legally completed by the 31 March 2022
  • Leasehold houses will not qualify for the Help to Buy: Equity Loan 2021 - 2023 programme unless:
    • The house was constructed on inalienable freehold land only (being inalienable land owned by and registered to the National Trust or Crown Estate)
    • The house has been disposed of to the Developer on a long leasehold basis from either the Crown Estate or the National Trust
  • The ground rent charged on any leasehold Eligible Dwelling must not exceed a peppercorn per annum
  • The use of Estate Rent Charge enforcement powers under Section 121 Law of Property Act 1925 or any other express means of enforcement of the Estate Rent Charge enabling re-entry, the granting of a lease or repossession of an Eligible Dwelling will not be permitted under the Help to Buy: Equity Loan 2021 - 2023 programme under any circumstances
  • Any Developers intending to develop Eligible Dwellings forming part of a building above either 18 metres or 6 floors in height (whichever is the lower), are required to become a registered signatory to the Building a Safer Future Charter prior to commencing development
  • Eligible Dwellings must have the benefit of an NHBC Building Warranty or other equivalent Building Warranty approved by Homes England; architects certificates and professional consultant certificates are not acceptable
  • Developers are required to have adopted and complied with the Consumer Code for Home Builders in respect of each Eligible Dwelling
  • Developers must reimburse reservation fees (without deduction) to the purchaser if either the purchaser or the Developer withdraws from the purchase (for any reason) prior to exchange of contracts
  • Eligible Dwellings on developments must comply with:
    • The Building Regulations standard for the Eligible Dwelling either prescribed by the relevant Local Planning Authority or set out within the Building Regulations Approved Inspector’s Initial Notice
    • The Developer must provide the Eligible Purchaser with the latest version of an Energy Performance Certificate (EPC) evidencing compliance with the 2013 energy efficiency requirements of Building Regulations (Part L)
    • An Eligible Dwelling will be an Exempt Flat if its foundations were constructed on or before 1 May 2020; or the Developer has evidenced to the satisfaction of Homes England that the design of the building cannot be adapted to comply with the 2013 energy efficiency requirements of Building Regulations (Part L)

Our team of New Build development experts are on hand to answer your questions, whether you are a buyer or a developer applying for a Help to Buy allocation.

London Residential Development

newhomes@hamptons.co.uk

020 3451 1544

Country Residential Development

hamptonsnewhomes@hamptons.co.uk

What our research team has to say

What will be the impact of the new Help to Buy scheme? Read the forecast from Hamptons Research.