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The deadline for the completion of new homes under the Help to Buy equity loan scheme has been extended by two months due to the impact of COVID-19 on housebuilding.
Under the scheme, which is being removed in March next year, new homes were required to be completed by the end of December for buyers to qualify for the government support.
But this was extended to the end of February 2021 in a government announcement on Friday evening, in recognition of the slowdown caused by coronavirus on many building sites.
The scheme still requires legal completion of purchases by the end of March 2021 to qualify, although some extensions will be granted allowing completion by May.
Help to Buy equity loans see the state lend up to 20% of the value of the home, or 40% in London, to reduce mortgage costs for buyers.
Since the start of the scheme on 1 April 2013, 272,852 property sales have been completed.
It is set to be replaced from April 2021 with a new Help to Buy scheme only open to first-time buyers, which is scheduled to run for two years until March 2023. Regional price caps will be applied to restrict the number of eligible properties.
Housing minister Christopher Pincher said: “Today’s [Friday’s] announcement will help provide certainty and assurance for Help to Buy customers whose new homes have been delayed due to coronavirus and affirms the government’s commitment to helping more people to own their own home.”