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Help to Buy Wales extended until 2022

(Adobe stock image)

The Welsh Government has launched the new Help to Buy Wales Scheme (phase 3) which will continue to offer vital support to home buyers in Wales.

The current scheme (phase 2) will close to new applications on 31st March 2021 at 5pm with the new phase starting on 1st April for 12 months. The Help to Buy Wales scheme has supported more than 10,000 property purchases in Wales since its launch in 2014.

Those currently in the process of purchasing their home through the current scheme (phase 2) have until 5pm on 31st March to get their applications in on properties that must be be practically and legally completed by the 23rd December 2021.

What is Help to Buy Wales?

The Help to Buy Wales scheme is a Welsh Government backed scheme that provides a shared equity loan of up to 20% of the property price up to a figure of £250,000, interest-free for the first 5 years, to buyers of brand new homes.

What has changed?

The previous scheme which had a price limit of £300,000, comes to an end for applications on 31st March 2021 and has enabled many potential home buyers to purchase their first or larger home since its introduction.

Welsh Government has announced that the new scheme will commence for applications from 1st April 2021 and will initially run for 12 months to 31st March 2022 with the possibility of an  extension of a further 12 months to 31st March 2023.

The announcement will offer ongoing financial assistance to those looking to purchase a new build home but who have been unable to save sufficient deposit to obtain an affordable mortgage.

The scheme which requires a minimum deposit from the buyer of 5%, will encourage the housebuilding industry to continue to deliver homes to meet with the strong demand from potential home buyers.

New Home developers have already made a significant contribution to Welsh Government Affordable homes targets via the existing scheme and this will enable appreciably more potential home buyers to purchase a brand new home.

The scheme remains available to all buyers other than those buying a second home, buy to let investors or those seeking to part exchange an existing home.

Every new home offered under the scheme will have provision for high speed broadband ready and developers signing up will be required to ensure that homes are of excellent quality in terms of build and finish, something that Llanmoor have won many awards for over their 55 year establishment.

Tim Grey, Sales Director of Llanmoor Homes

Tim Grey, Sales Director of Llanmoor Homes said: “The announcement of a new scheme is excellent news for both home buyers and the Housebuilding industry as a whole

“Help to Buy Wales has been vital in supporting buyers who may otherwise have struggled to raise sufficient deposit to purchase their new home.

“Since the start of the pandemic, there has been a lack of affordable mortgage finance. Undoubtedly, with the new Help to Buy Wales Scheme and the slowly improving availability of higher loan to value mortgage products, potential new home buyers in Wales will have the confidence and ability to commit to the purchase of a brand new home.”

For more information on Help to Buy Wales visit https://gov.wales/help-buy-wales