What do you will supersede the Help-to-Buy scheme n 2022?

[daniel1990]

Help-to-Buy is currently set to end in December 2022. It's effectivness is due for review and this could mean one of the following:

• It will be extended
• It will end completely so that there is no longer financial supports for first time buyers
• It will be replaced with something new (possibly the Shared Equity scheme).

What do you think is more likely? Perhaps that decision is already known and I missed it.

I'm posting this both because I'm generally interested but also wondering whether I should be aiming to buy a house before it expires.

 

[jack_stewart]

@daniel1990 I think it's really just a convoluted way to take government funds and give them to developers and that it doesn't really help buyers as the subsidy gets priced into the market very quickly. I don't think it should be extended but I think the government will take the path of least resistance and push it out another year.

 

[jonh]

@daniel1990 Hopefully something that increases supply rather than giving people money to push up demand.

 

[eighthwielder]

@jonh Did you not get the memo?

You will own nothing
And you will be happy

 

[jensearching]

@daniel1990 No idea but also following

 

[supernova1044]

@daniel1990 No idea but I might share what my mortgage provider told me about shared equities. This is all hearsay and only one person, but he said banks don't like shared equity homes. If we default on the mortgage it's another person/entity the bank has to split the recovered money from if they can sell the house after repossessing. It looks like more risk to the bank, unless the government would waive their right to get banks on board.

 

[roky23]

@daniel1990 Shtupid question but what does the scheme actually do?

It sounds like another kick in the teeth. Already struggling to save for a deposit.

 

[1011]

@roky23 Currently, it increases the price of a new build by 30k /s

 

[jimkarri]

@roky23 At its increased rate it allowed you to get up to 10% or 30k of a deposit back through your taxes. It had to be used on a new build and through an approved developer. I'm sure it helped some people, but it didn't really help with the low mortgage limits since new builds are out of reach for most average people.

 

[brianb6885]

@daniel1990 Help-to-rent

 

[hkwh2019]

@brianb6885 You can't (officially) rent or sell your home for 10 years if you get the help to buy

 

[bux72]

@hkwh2019 5 years

 

[hkwh2019]

@bux72 Really? I could have sworn it was 10. Did it change when they increased it to 30k?

 

[1011]

@hkwh2019 I don't know when it changed but it's definitely 5. Surprised you got upvotes, maybe it's not commonly known.

 

[eighthwielder]

@daniel1990 The 'buy a house for Ukrainians' scheme