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Will housebuilders be hindered by Help to Buy restrictions?

The government support scheme has been limited to first-time buyers and regional sales price caps put in place
Will housebuilders be hindered by Help to Buy restrictions?
  • The Help to Buy scheme has boosted completions and average sales prices for housebuilders
  • New restrictions around eligibility for the scheme pose a risk to earnings

Amid all the uncertainty permeating the UK property market, one date has been fixed in the diaries of housebuilder management teams long before the pandemic emerged. On April 1 a new Help to Buy scheme will come into force in England. The equity loan scheme will be restricted to first-time buyers and include regional house price caps. 

That the curtailment of the old scheme will no longer coincide with the end of the stamp duty holiday will likely be a relief to housebuilders. Nevertheless, stricter eligibility requirements still cast uncertainty over whether the rate of completions and sales price growth will continue to be propelled forwards at the same rate as they have been in recent years. 

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