Extending Help to Buy is a great news for first-time buyers

The extension of Help to Buy will enable more aspiring homeowners in Standish to escape the rental trap and get on the property ladder sooner, according to Bloor Homes.

The developer, which is building a range of new homes at its Standish Grange development says the Government’s decision to extend the scheme for first-time buyers until 2023 is great news for first time buyers trying to save up for a deposit.

It comes as research by Compare My Move shows that the average renter in Britain can step on to the property ladder two years earlier by using Help to Buy.

The government-backed scheme enables buyers to purchase a property with a just five per cent deposit and 75 per cent mortgage, with the remaining 20 per cent of the purchase price being provided as an equity loan, which is interest free for the first five years.

The scheme, which was due to end in 2021, is currently available to both first-time buyers and existing homeowners purchasing a new build property worth up to £600,000.

Chancellor Philip Hammond announced in his Autumn Budget that while Help to Buy would no longer be available to existing homeowners after 2021, the scheme would be extended until 2023 just for first-time buyers, with a regional price cap also being introduced.

According to the research by Compare My Move, the reduction in the size of the deposit required to purchase a property has had a major impact on first-time buyers in cities and towns across the country, enabling the average first-time buyer to save the five per cent needed in just 12 months, compared to the three years it would take to save for a 15 per cent deposit.

James Clark, Regional Sales Director at Bloor Homes North West, said: "The extension of the Help to Buy scheme is excellent news for first time buyers who are struggling to save for their deposit while paying rent.

"This research shows that the average first-time buyer in Britain pays out £15,000 in rent while saving for a 15 per cent deposit. Without the aid of Help to Buy, many young buyers would be stuck in a cycle of renting and take several more years to purchase their first home.

"Help to Buy has already been instrumental in helping many of our buyers step on to the property ladder at Standish Grange, and the Chancellor’s decision to extend the scheme for first-time buyers is excellent news for those currently saving up to buy their own home.

"It’s also worth reminding buyers who already own their own home that they can still benefit from the scheme until 2021, and I would encourage prospective purchasers in Standish to speak to our sales advisors at Standish Grange to find out how the scheme could help them get on or move up the property ladder."