Help to Buy deadline extended due to coronavirus-related construction delays

New build homes registrations
Those using the Help to Buy scheme will have longer to complete their purchases following construction delays caused by the pandemic
PA
Lizzie Edmonds @lizzieedmo12 February 2021

The deadline to complete a house purchase under the government's Help to Buy scheme in England has been extended.

The scheme - which has helped hundreds of thousands of people buy a newly-built home through a government advance for the deposit -  is coming to an end in England. 

The Covid-19 pandemic has meant the construction of many properties that would qualify for the scheme have been delayed by as much as eight months.

This is due to issues such as slower supply lines and a self-isolating or quarantining workforce.

Figures released earlier this year following a BBC Freedom of Information request suggest covid-related delays put the completion of over 16,000 Help to Buy properties at risk.

Additionally, buyers would face large bills if purchases had fallen through.

FILE PHOTO: A "help to buy" sign is pictured next to new houses in Aylesbury
More than 16,000 properties were at risk of not meeting the deadline, data showed
REUTERS

Today Homes England said that, while the scheme will end as planned on March 31 2021, those who are currently using it will have two more months to get the keys to their home.

 The government's extension to the deadline - its third - gives homebuilders an extra two months to complete developments. It means that purchases can be completed by the end of May.

Information placed on the gov.uk website said: “We are extending legal completion to May 31 2021 due to delays caused by coronavirus.

“This allows an extra two months for home builders to complete the build and for home buyers to legally complete and get the keys to their home.

“There will be no more extensions, so we are asking home builders to continue to build at pace.

“Please check with your home builder and conveyancer that you’re able to meet these dates.”

A spokesman for Homes England told the BBC: "This measure provides certainty to developers to build out homes delayed and further protects customers whose purchases have been delayed by Covid-19."

He added the change would help ensure "those buying a home through the scheme are not disadvantaged by circumstances beyond their control".

 Some 278,000 households have benefitted from the Help To Buy scheme.

Furthermore, the stamp duty holiday is due to expire at the end of March.

Home buyers making purchases up to £500,000 who legally complete between July 8 2020 and March 31 2021 do not have to pay stamp duty, saving many people thousands of pounds.

But from April 1 the stamp duty threshold will revert from £500,000 to £125,000.

First-time buyers will still be eligible for stamp duty relief.

A new Help to Buy equity loan scheme, for first-time buyers only, starts on April 1 2021 and will run until March 31 2023.

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