Housing Market Benefits From Help to Buy Extension
26 March 2014
George Osborne recently announced that the first stage of the government's 'Help to Buy' scheme, would be extended for another four years. Instead of ending in 2016, the scheme will now end in 2020.
Several companies within the construciton industry have already benefitted from the news, with shares in companies such as Bovis Homes and Taylor Wimpey rising as much as 4%.
The chancellor has announced that a further £6bn would be invested in the scheme, allowing a further 120,000 homes to be built in England.
Under the scheme, house buyers can put down a deposit of just 5% and can get a mortgage for 75% of the value of the property, with the government making up the difference of 20% through an equity loan. When the property is sold, the government will make a profit or loss, depending on the market value of the property at the time of sale.
Similar schemes for Scotland, Wales and Northern Ireland are yet to be announced.
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