Help To Buy Prices Stay 'Comfortably' Below Regional Price Caps

The Whathouse? New Homes Index, which tracks Help to Buy average new build prices across Britain, has revealed that prices are comfortably below the regional price cap limits in all regions. This is, Whathouse believes, a sign that concerns over the new Help to Buy scheme - which came into effect 1 April 2021 - and potential lack of affordability are not playing out.  This provides reassurance to first-time buyers now able to benefit from the scheme, with many having made the most of lockdown to save the 5% deposit required to get onto the property ladder. Read more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/help-to-buy-prices-stay-comfortably-below-regional-price-caps.html 

Help To Buy Loans Pass £20bn

The number of people purchasing a home through the Help to Buy scheme is at an all-time high. The latest Help to Buy statistics show that in the financial year 2020-21 over 55,000 households bought their home with the support of Help to Buy: equity loan – a record year for the scheme. Since the scheme was introduced 328,506 households have now purchased a home through Help to Buy. In total, the value of these equity loans has reached over £20 billion, with the value of the properties sold under the scheme going past the £90 billion mark. Read GovUK website.

https://www.gov.uk/government/news/record-number-of-households-benefit-from-help-to-buy-as-loans-pass-20bn 

Help To Buy Leaseholders Can Now Sell Homes At ‘Cladding Affected’ Value

Leaseholders who used the Help to Buy programme to purchase their homes in blocks affected by cladding will now be allowed to sell their properties at reduced prices after the organisation in charge of the programme reversed its policy. Homes England has shifted its advice to those carrying out valuations, stating that surveyors should now take into account the impact that dangerous cladding will have on the value of the property before a leaseholder sells or redeems the loan on their home. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/help-to-buy-leaseholders-can-now-sell-homes-at-cladding-affected-value-says-homes-england-72058?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60 

What Are The New Rules For Help To Buy?

Rules have changed for the government-backed Help to Buy scheme and many buyers are confused about what the new rules mean. The new scheme came into effect this June, only first-time buyers are able to benefit from the scheme and the current plan is to end it completely by 2023. Crucially the other big change is new regional property price caps, which the government says will help them to focus on who needs the scheme the most. To benefit, the new build home being bought must be within the relevant regional property price-caps. Read what the price caps are and more on the Property Reporter website.

https://www.propertyreporter.co.uk/property/what-are-the-new-rules-for-help-to-buy.html 

Help To Buy Gives 10% Return To Taxpayers

The Help to Buy equity loan scheme has produced a return of around 10% to the exchequer, according to an analysis of government data by housebuilders. The support scheme for buyers of new build homes, which has helped more than 313,000 households to purchase a property since being set up in 2013, has already generated more than £230m for the taxpayer, according to a report by the Home Builders’ Federation (HBF). The HBF report into the scheme also finds no evidence that it has contributed to price inflation. Read more on Housing Today.

Help to Buy gives 10% return to taxpayers | News | Housing Today

Help to Buy Scheme – Parliamentary Written Answer

Navendu Mishra: To ask the Secretary of State for Housing, Communities and Local Government, what estimate he has made of the value of the applications to the existing Help to Buy scheme in England

Christopher Pincher: From the start of the scheme on 1 April 2013 to 30 September 2020, the total value of equity loans has been: (a) £17,413,247,594 in England.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-03-24/174990

Leaseholders Feel ‘More Trapped’ In Blocks With Cladding Because Of Help To Buy Loans

Some leaseholders who have attempted to move have been blocked by Homes England, the administrators of the Help to Buy programme, because of restrictions around sales of apartments in blocks with dangerous cladding. The government’s housing delivery agency is now preventing the redemption of loans on these homes, too. Homes England currently has a condition in place in which those who have bought their homes with support of a Help to Buy loan are only allowed to sell their home at an ‘unaffected market value’. This means that homes cannot be sold at a price that takes into account the dangerous materials on the building. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/leaseholders-feel-more-trapped-in-blocks-with-cladding-because-of-help-to-buy-loans-69463?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60 

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Rebecca Long Bailey: To ask the Secretary of State for Housing, Communities and Local Government, with reference to Homes England's press release of 8 December 2020 on the effect of the covid-19 outbreak on housing starts, if his Department will ensure that buyers already in the process of purchasing properties will not lose access to Help to Buy scheme finance in the event of covid-related delays to the construction of their properties.

Christopher Pincher: Where reservations were agreed before 30 June 2020, they were granted flexibility allowing such reservations to practically complete by 30 April and legally complete by 31 May 2021.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-01-19/140145

Government Loses £395,000 On Help To Buy Loans

Homes England, the government’s administrator of the Help to Buy programme, has revealed that the government had lost £395,000 across 119 Help to Buy loans redeemed by leaseholders in properties covered in aluminium composite material (ACM). The revelations come despite fears in the immediate aftermath of the Grenfell Tower tragedy that the government could be forced to write off millions of pounds of taxpayers’ money invested in the Help to Buy scheme through leaseholders redeeming their loans on a much-reduced property value due to the presence of ACM on their blocks. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/government-loses-395000-on-help-to-buy-loans-for-flats-in-acm-clad-blocks-69240?utm_source=Housing60&utm_medium=email&utm_content=article_link&utm_campaign=H60

Housing Set For Mid-Year Slump

But activity set to pick up again later in the year as wider economy rebounds from the pandemic.Housing is set for a mid-year slump following the end of the stamp duty holiday and the first phase of the Help to buy scheme on 31 March, according to a Construction Products Association (CPA) Survey. The end of the government schemes are expected to put the brakes on a still thriving market which was seeing higher levels of mortgage lending and property transactions at the end of last year than before the pandemic. Read more on the CPA website.

https://www.constructionproducts.org.uk/news-media-events/news/2021/january/construction-bouncing-back-despite-w-shaped-recession-and-recovery/

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Grahame Morris: To ask the Secretary of State for Housing, Communities and Local Government, if will he extend the Help to Buy scheme to support (a) housebuilders and (b) first time buyers with approved mortgages in relation to new build handover dates that have been delayed beyond that scheme's cut off date as a result of the covid-19 outbreak.

Christopher Pincher: As announced at Budget 2018, there is a new two year Help to Buy scheme commencing from 1 April 2021, specifically for first time buyers and so supporting people onto the housing ladder. Where new build properties are not completed within the current Help to Buy scheme deadlines, they may be eligible for sale through the new scheme. More information on the new Help to Buy scheme can be found at https://www.helptobuy.gov.uk/equity-loan/eligibility/ .

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-06-25/64892

Help to Buy Scheme: Coronavirus – Parliamentary Written Answer

Lord Lansley: To ask Her Majesty's Government what plans they have to extend the cut-off date for the completion of Help to Buy properties by six months in view of the delay to construction activity

Lord Greenhalgh: To support customers, Help to Buy Equity Loan Agents are already offering more time for purchasers to complete their transactions. Homes England released this guidance on 1 May.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-05-14/HL4509

Government In Talks To Extend Help To Buy

The Government is reportedly considering extending the Help to Buy scheme beyond its current end-date of April 2021. The Government is in talks with The Home Builders Federation, whose members deliver around 80% of new homes built each year, about extending the scheme to help support the industry after Covid-19 lockdown measures are lifted. The shutdown of construction work and sales offices is expected to have a long-term impact on the sector, with Savills estimating that the lockdown will hinder the construction of around 200,000 new homes. Read more on the Financial Reporter website.

https://www.financialreporter.co.uk/mortgages/government-in-talks-to-extend-help-to-buy.html

Kerslake Calls On Government To Consider Help To Buy Extension

The former head of the civil service has said the government needs to consider extending the Help to Buy scheme in order to help the industry recover in the wake of the covid-19 crisis. Lord Kerslake said the government would also need to look at raising grant rates for social housing. Kerslake said: “I think the challenge is going to be to restore confidence after what has been a big health and economic shock. The sort of things you’ll be looking for is where the government can give confidence to the market, particularly on build for sale, with things like Help to Buy.” Read more on Housing Today.

https://www.housingtoday.co.uk/news/kerslake-calls-on-government-to-consider-help-to-buy-extension/5105498.article

Help to Buy Scheme – Parliamentary Written Answer

John Healey: To ask the Secretary of State for Housing, Communities and Local Government, what policy decisions were set out in Budget 2020 in relation to Help to Buy.

Christopher Pincher: [Holding answer 19 March 2020]: In February, the Government confirmed details of the new Help to Buy Scheme from April 2021, which included a policy decision to define a first-time buyer as someone who has never previously owned a property. This definition is consistent with other government policies such as Stamp Duty Land Tax exemption. Budget 2020 set out the revised forecast expenditure arising from this decision.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-03-16/29825

Payment Holiday Offer For Help To Buy Homeowners

The government is to give homeowners who used a Help to Buy loan to purchase their property a payment holiday if they run into financial difficulties due to the coronavirus outbreak. While no details have been published on how the holiday would work, Homes England said it would offer similar repayment breaks for those who were struggling to pay interest fees on their equity loans.

The news from Homes England follows the chancellor of the exchequer’s announcement on Tuesday that homeowners with standard mortgages would be offered a three-month payment break. Read more on Housing Today.

https://www.housingtoday.co.uk/news/payment-holiday-offer-for-help-to-buy-homeowners/5105021.article

Help To Buy Loans Tally Tops £14bn

Almost a quarter of a million homes have been bought by people using £14.3bn of Help to Buy loans since the introduction of the government’s deposit scheme. The MHCLG said 248,075 properties had been bought using Help to Buy loans between April 2013, when the scheme was established, and 30 September last year. Controversially nearly half (46%) of all loans went to households earning in excess of £50,000 a year. Nearly a fifth (18%) went to households earning between £60,001 and £80,000. Read more on Housing Today.

https://www.housingtoday.co.uk/news/help-to-buy-loans-tally-tops-14bn/5104593.article

MHCLG Says Publishing Help To Buy Forecasts ‘Not Appropriate’

MHCLG says it is “not appropriate” to set out annualised net forecast expenditure or costs relating to Help To Buy because they are not reflective of the actual cost and return to government. This stance was upheld by Housing Minister Christopher Pincher in response to a written Commons question from Clive Betts (Lab – Sheffield South-East). In September, the Commons Public Accounts Committee (PAC) published a report saying Help To Buy will have tied up some £29bn in cash terms by the time it concludes in 2023 – but the value of what it has achieved is uncertain when many of those helped could have bought anyway. Read more on 24housing.

https://www.24housing.co.uk/news/mhclg-says-publishing-help-to-buy-forecasts-not-appropriate/

No Quality Threshold For Help To Buy Funding

The government has decided not to force housebuilders to meet a specific quality threshold in order to access funding under the Help to Buy scheme. Publishing details of the terms under which the scheme will run between 2021 and when it closes in 2023, the government said the equity loan product, which has been instrumental in supporting the housebuilding industry, would be restricted to first-time buyers and subject to regional price caps. In addition, the government has laid out a series of further requirements that  builders will have to fulfil, such as signing up to the New Homes Ombudsman scheme. Read more on Housing Today.

https://www.housingtoday.co.uk/no-quality-threshold-for-help-to-buy-funding/5104509.article

Help to Buy Scheme – Parliamentary Written Answer

Mr Clive Betts: To ask the Secretary of State for Housing, Communities and Local Government, with reference to the investigation into Persimmon new build properties, which found thousands of homes did not comply with building regulations and many of which were bought under the Help to Buy scheme, what plans he has to ensure that properties sold by other developers under that scheme conform to (a) building regulations and (b) other requirements.

Esther McVey: House builders are responsible for ensuring they build high quality homes which are fit for purpose. Persimmon’s independent review has identified serious failings and they will want to take immediate action to address the concerns raised. We will also create a New Homes Ombudsman to ensure homebuyers have a means of redress.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2019-12-20/266