Agents worried over new pared-back Help to Buy scheme

first_imgThe government’s Help to Buy scheme has been pared back and will now only be available to first time buyers and include reduced house price caps outside London.This announcement will usher in a period of uncertainty for the housing market to see what happens on March 31st when the new scheme starts.House builders in recent years have said that Help to Buy accounts for up to 60% of sales at some sites, but rive at least 25% of sales at most.During the five years that the scheme has been running, many estate agents are reliant on the Help to Buy scheme to market newbuilds and drive sales to both home movers and first time buyers.“Our new Help to Buy Equity Loan scheme from April 2021 to March 2023 will be targeted at helping first-time buyers to get a foot on the property ladder,” says housing minister Christopher Pincher.The new price caps, which are based on 1.5 times the region’s average house price, are as follows.North East: £186,100North West: £224,400Yorkshire and the Humber: £228,100East Midlands: £261,900West Midlands: £255,600East of England: £407,400London: £600,000 (as before)South East: £437,600South West: £349,000These caps, which are lower than previous limits, mean many first time buyers will be priced out of town and city centres including York, where Ben Hudson (pictured) of estate agency Hudson Moody has said he is concerned about Yorkshire’s new £228,100 limit.“We receive a great deal of interest in the Help to Buy scheme which has made the dream of owning a property more of a reality over the last few years for many who otherwise would have found it impossible,” he says.Pincher claims that first time buyers excluded by the new Help to Buy scheme can turn to either the government’s smaller First Homes scheme or access one of the new long-term fixed-rate mortgages launched earlier this year.Read more about recent Help to Buy changes. Ben Hudson Hudson Moody help to buy York December 21, 2020Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021 Hong Kong remains most expensive city to rent with London in 4th place30th April 2021 Home » News » Land & New Homes » Agents worried over new pared-back Help to Buy scheme previous nextLand & New HomesAgents worried over new pared-back Help to Buy schemeIndustry concerned about going ‘cold turkey’ when new Help to Buy Equity scheme kicks off on April 1st next year.Nigel Lewis21st December 20200427 Viewslast_img