The Government has recently published guidance for developers concerning the end of the Help to Buy Equity Loan Funding scheme in March 2023:
Help to Buy: Equity Loan (2021-2023) Homebuilder briefing – Applications Closedown
Help to Buy: Equity Loan (2021-2023) applications closure – Homebuilder frequently asked questions
We are aware that Homes England has already contacted affected developers to highlight the relevant upcoming deadlines, but in summary the main points to note are as follows:
- All Help to Buy Eligible Dwellings MUST have reached Practical Completion by 31 December 2022 (First Longstop Date) – i.e. the property must be ready to live in and issued with a building warranty and a building regulations completion certificate. Homebuilders must tell homebuyers if they cannot meet this date.
- All Help to Buy Eligible Dwellings MUST have legally completed on or before 31 March 2023 (Second Longstop Date). Homebuilders must tell homebuyers if they cannot meet this date.
- If exchange and legal completion cannot happen by 31 March 2023, homebuilders must return the reservation fee in full. Additionally, if contracts have been exchanged, homebuilders are required to unconditionally release the buyer from the contract and refund their full deposit as soon as possible.
- The buyers’ application deadline to qualify for HtB funding has been set for 6pm on 31 October 2022.
- As applications close at 6pm on 31 October 2022, this is the last day that Help to Buy: Equity Loan can be advertised. All promotion of Help to Buy: Equity Loan (2021-2023) must end on this date, or (if earlier) must stop when a seller’s last Help to Buy eligible home has been reserved.
- There are no current plans to extend or replace Help to Buy: Equity Loan.
If you need any further information or wish to discuss any particular implications for current sites where you are selling properties under the Help to Buy scheme, please contact Stavrina Tofallis, Head of Residential Property, or Dominic Bauers, Solicitor, Development Sales.
