Getting onto the property ladder will become more accessible to all under new measures announced in last month’s Autumn Budget, according to Lincolnshire-based housebuilder Chestnut Homes.
Chancellor Philip Hammond announced that when the current Help to Buy scheme ends in March 2021, a new scheme which is more focused on helping first-time buyers will replace it and run for two years until March 2023.
Currently, both first-time buyers and people with a home to sell are able to purchase a new-build home using only a five per cent deposit and a 20 per cent ‘Help to Buy’ equity loan, with a 75 per cent mortgage needed for the remaining value.
Under the new scheme, just first-time buyers will be able to use Help to Buy to purchase a home priced up to 1.5 times the current forecast average first-time buyer price in each region. In Lincolnshire, that cap will be £261,900.
David Newton, Managing Director of Chestnut Homes, said: “The Help to Buy scheme has been invaluable in helping first-time buyers get onto the property ladder and therefore keeping the housing market moving, so we are delighted to hear that it’s being extended.
“Along with this, we are very pleased by the additional £500m boost from the Government to the Housing Infrastructure Fund (HIF) across the UK, as offering affordable housing opens up opportunities for everyone.”
Chestnut Homes, in partnership with Boston Borough Council, is currently finalising an allocation of funding from the HIF towards The Quadrant development in Boston where 100 of the new homes have been designated as affordable.
David said: “With the Government also removing the stamp duty fee for first-time buyers purchasing shared equity homes up to the value of £500,000, there’s even more opportunity to make that leap onto the property ladder at the moment.
“The news that the Housing Revenue Account borrowing cap for council house building will also be lifted is great news to meet the constant need for housing in Lincolnshire and across the UK.”
Having celebrated its 30th anniversary this year, Chestnut Homes provides homes to suit all buyers across Lincolnshire. Find out more at www.chestnuthomes.co.uk.