Potential home-owners, look sharp - the UK Government has announced the new Help to Buy scheme is about to open.
Homes England has put out a statement that first-time buyers interested in new-build homes can apply for the new Help to Buy: Equity Loan scheme, which covers 2021-2023, can apply from Wednesday 16th December.
For those unfamiliar of the benefits, a Help to Buy: Equity Loan sees the government lend potential buyers up to 20 per cent of the cost of a new-build home (properties in London can see the government loan up to 40 per cent). Homebuyers are then required to pay a deposit of 5 per cent or more, and arrange a mortgage of 25 per cent or higher to make up the remaining amount.
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To be eligible for the scheme, the house must be newly built and worth up to £600,000. Homebuyers are also advised to be able to afford the monthly fee and interest payments, not own any property previously, and cannot sublet or rent out the property after they've bought it.
First-time buyers will be able to reserve their homes from mid-December and get the keys to move in from 1 April 2021.
Speaking about the new scheme, Housing Secretary Robert Jenrick said: "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.
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"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."
Will German, director of Help to Buy at Homes England, added: "Help to Buy has already helped more than 270,000 people into home ownership and 82% are first-time buyers. The new Help to Buy builds on this success with first-time buyers in front of mind.
"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."
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The Help to Buy scheme has been hugely beneficial for young people hoping to get a foot up on the property ladder.
Two-thirds (63 per cent) of the first-time buyers were aged 34 and under, with a quarter of those on the scheme from Black, Asian and minority ethnic backgrounds.
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