Help to Buy – Wales, Equity Loan Programme 2021-2022 is a Welsh Government-backed equity loan programme that provides loans to potential homes buyers to help them afford a deposit. Guidance has been released, which outlines eligibility requirements and property developer’s obligations for the scheme.
What has changed from the previous Help to Buy scheme?
The new scheme will provide loans of up to 20 per cent of the property value on a maximum property value of £250,000, down from the £300,000 cap for the previous scheme.
These loans are interest-free for the first five years but can only be used for new build properties.
Who is eligible for Help to Buy?
To be eligible for the scheme, buyers must be purchasing an eligible home, be able to fund at least 80 per cent of the property price, and have a minimum deposit of 5 per cent.
The scheme is not available to buyers of second homes, buy-to-let investors or those seeking to part exchange an existing home.
For the full eligibility requirements visit the Welsh Government’s website.
Propertymark's call for Help to Buy expansion
On 8 March Propertymark released its Welsh Manifesto which outlined our key asks for the next Welsh Government, due to be decided in the Welsh Elections in May.
One of the key requests to the new Welsh Government is to expand the Help to Buy scheme to the second-hand homes market to provide a boost to house sales and allow more first-time buyers to get onto the property ladder.
A similar request was made to the UK Government in our 2021 Budget Representation in the run-up to the UK budget this year however, an expansion to Help to Buy was not included, despite successful campaigning elsewhere with the extension to the Stamp Duty holiday.
Propertymark will continue to lobby the Government and decision-makers in the industry to make these vital changes.
Campaign leads to extended Stamp Duty holiday
The Chancellor has listened to Propertymark’s calls to avoid a cliff-edge deadline to the Stamp Duty Land Tax holiday in the UK Government’s budget, today, 3 March 2021. The nil rate band up to £500,000 will end on 30 June, instead of March. A transitional nil rate band up to £250,000 will be in place until September and then return to £125,000 from October.
