Help to Buy deadline brought forward by two months

The Help to Buy scheme, which was launched in England in April 2013, enables first-time buyers and home-movers to purchase a new-build home with a five percent deposit.

The government disburses an equity loan of 20% of the property’s value (40% in London), which is interest-free for the first five years.

The remaining 75% (55% in London) can be borrowed in the form of a mortgage.

First-time buyers will now need to reserve a property by 6pm on 31 October 2022, as the scheme will close at the end of March 2023. It had previously been anticipated that buyers would have until the end of December 2022 to secure a property.

The deadline has been brought forward to ensure a sufficient time window to exchange contracts and complete, according to Homes England, the body responsible for administering the scheme.

For buyers, the property being purchased must be ready for practical completion (ie ready to live in) by 31 December 2022. By 31 March 2023, the purchase must be completed and the home moved into – otherwise the government’s equity loan will not be forthcoming.

Between April 2013 and December 2021, 356,000 homes were bought using the scheme. Over two-fifths (82%) went to first-time buyers.