Help To Buy Scheme extended until 2020

Housebuilders will be rubbing their hands with glee with the announcement that the government has extended the help to buy scheme for newly built homes. Currently the first phase of the Help To Buy is due to come to an end in 2106 but the government has said that the scheme will be extended by another 4 years.

The news will be welcomed by all housebuilders and this was reflected in their share price on the stock exchange. Persimmon who are one of the UK’s biggest developers have seen their share price increase by 6% today on the news.

The Help TO Buy Scheme has been described as moronic by some industry experts who are concerned it will damage the housing market. On the other hand many believe that it has been good for the property market and has helped the economy to recover.

Analystst at Morgan Stanley Bank have attributed the housing market recovery to the Help To Buy Scheme and says that the 16% increase in new house starts is proof that the scheme is working.

The claims made by some that the housing market is overhearing are wide of the mark. If you take London out of the equation the rest of the UK is showing signs of improvement but is by no means overheating. The scheme was introduced in 2012 as a response to the credit crunch where Banks and building societies had stopped lending to first time buyers and homeowners looking to make that next move.

This meant that you could only buy a home if you had as hefty deposit to put down. In order to kickstart the property market the government introduced the scheme which gave buyers up to 20% of the purchase price of their property. Buyers are able to to purchase a property up to £600k across Britain. Initially the scheme was only accessible for buyers of brand new homes but has now been rolled out for the rest of the property market.