Government sets further 拢8.7bn aside for initiative 鈥� though scheme will only apply to first-time buyers
The government has extended a revised version of Help to Buy until March 2023.
But the scheme will be scrapped after this date, bringing to an end the measure which was introduced five years ago by then chancellor George Osborne.
From April 2021 a revised Help to Buy scheme will only offer equity loans to first-time buyers and for houses with a market value up to new regional property price caps.
These caps represent 1.5 times the average first-time buyer prices forecast in different regions, with loans set to be offered for houses worth up to 拢600,000 in London.
The Treasury has pledged 拢4.1bn for the scheme in 2022 and 拢4.6bn in 2023. It stated it will not introduce a further Help to Buy scheme after March 2023.
In the budget red book, the Treasury says that 鈥渃onditions in the market have improved since 2013鈥� and that 鈥渉ousing supply continues to increase鈥�.
But it adds that it wants 鈥渢o ensure future support is targeted at those who need most help into homeownership鈥�.
By March 2021 government expects to have invested 拢22bn into Help to Buy, which it says will have supported 360,000 households into home ownership.
| Region | Price cap for properties eligible for Help to Buy Equity Loan scheme from April 2021 to March 2023 |
|---|---|
| North East | 拢186,100&苍产蝉辫; |
| North West | 拢224,400&苍产蝉辫; |
| Yorkshire and The Humber | 拢228,100&苍产蝉辫; |
| East Midlands | 拢261,900&苍产蝉辫; |
| West Midlands | 拢255,600&苍产蝉辫; |
| East of England | 拢407,400&苍产蝉辫; |
| London | 拢600,000&苍产蝉辫; |
| South East | 拢437,600&苍产蝉辫; |
| South West | 拢349,000 |
Source: HM Treasury
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