Government announces further details on the Help to Buy scheme that will run from 2021 to 2023

The Ministry of Housing, Communities and Local Government (MHCLG) has announced further details of the Help to Buy scheme that will run from April 2021 until March 2023.

As previously announced in the Autumn 2018 Budget, the scheme will offer financial help to first-time buyers, for properties with a market value up to a regional property price cap.

On 24 February 2020, the MHCLG announced that developers wishing to use the Help to Buy scheme must also adhere to a range of new quality measures to improve consumer experience and safety, including:

• Any ground rent on the sale of leasehold properties through the scheme must be restricted to a peppercorn rent.
• Homes built from May 2020 must comply with the most recent energy efficiency requirements.
• Builders must be subject to adjudication provided by the New Homes Ombudsman and the preceding voluntary scheme (when established). Builders must sign up to the Building Safety Charter (when launched), if selling residential units under Help to Buy in blocks above 18 metres (or six floors, whichever is lower).
• Builders with a Home Builders Federation star rating must clearly communicate that rating on related Help to Buy communications and advertisements.

In addition, all buyers will be entitled to view the actual home being purchased (with their own surveyor if desired) before legal completion of sale.

Source: https://www.gov.uk/government/news/housing-secretary-clamps-down-on-shoddy-housebuilders