The news that the Help to Buy scheme has been extended to March 2023 has been a relief for thousands of first-timers. Our Canary Wharf estate agents have been taking a look at what this might mean for people who would like to buy a home in E14 and beyond.

Home buyers in London can avail of a 40% loan from Government

Currently as the scheme stands, home buyers trading up and first time buyers can avail of it. For Londoners this means that upon successful application they can avail of a 40% loan which is interest free for five years.

Together with a mortgage this can mean they only need to save a 5% deposit. This scheme has been a real lifeline for first-timers trying to get onto the property ladder.

First-time Buyers in E14 encouraged by the news

First-timers can breathe a sigh of relief for another few years!

The scheme has come under scrutiny and has been tweaked a little for the last two years from 2021 until 2023. People who want to buy property in E14 and the rest of London will still receive help to buy on properties up to £600,000, but in other areas the ceiling price will be lowered.

First-timer buyers only from 2021

Also, first-time buyers are the only group that will avail of the scheme in it’s latter two years. The Treasury said changes were brought in ‘to ensure future support is targeted at those who need most help.’ Clearly they feel first-time buyers take priority. This section of society now has an extra two years to get saving for that deposit and receive the help they need to take that crucial first step.

Buyers trading up still have 3 years to avail of the scheme

However with no changes to the plan until 2021, all buyers are still in with the chance to improve their futures right now.

The scheme has been availed of by just under 170,000 households since it began in 2013. It has helped not only first-time buyers but maybe those that have started families since buying their first property and have felt the need to trade up. 

It has been thought that the inclusion of all others is being used to help people to climb the property ladder instead of simply enabling them to get onto the first rung and has led to price inflation by house builders. Limiting the scheme to first-time buyers for the last 2 years could help to curb price inflation, which is a good thing for all buyers.

Looking to buy a house or apartment in E14?

If you would like more information on the Help to Buy scheme or would like to live in E14 or surrounding areas, give Henry Wiltshire a call. We have the experience and knowledge of the area that can help you with your query.

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