This extension enables those buying via its equity loan scheme to complete their purchases where delays in construction have occurred due to COVID-19.
It is hoped that this new deadline will benefit both agents and developers selling new homes, by preventing the collapse of thousands of deals, which are provided under the Help to Buy scheme.
Amid wider concerns surrounding the economy and unemployment in the construction sector; it is thought that the completion of as many as 18,000 Help to Buy purchases has been implicated by Coronavirus.
With an extension to the deadline, what does this mean for the property industry, estate agents, and housebuilders, alike?
Cut-off date
The original cut off date of December 2020 has now been extended until at least 30 February 2021, with a strict stipulation for all transactions to be concluded by no later than original completion date of 31 March 2021.
Terms and conditions
Although the extension is generous to agents, housebuilders, and first-time buyers alike, there are of course conditions to the deal. Priority lies with homebuyers who made a reservation prior to 30 June. Recently, however, the Government’s housing agency Homes England is working with those affected to ‘assess their situation’ and, in some cases, grant a further extension to 31 May 2021 to legally complete. The new scheme, due to start on 1 April next year, will be a more specific system which only includes first-time buyers, whilst adhering to property price caps. This scheme will not be extended.
Propertymark's views
This extension, whilst a generous offering from the UK Government confirms their commitment to enabling people to buy a home.
For the property industry and the consumer alike, it is hoped that this will provide clarity and certainty for those customers whose property purchases have been implicated due to the Coronavirus.
