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Help to Buy scheme extended in Wales until 2025

THE HELP TO BUY scheme which aims to help the purchase of new build houses will be extended in Wales until 2025. 

The Welsh Government will spend £63 million to keep the shared equity programme running, according to Finance Minister Rebecca Evans.

Government intends to raise the home purchase price cap from £250,000 to £300,000.

Ms Evans also indicated that the Welsh Government will not be capping council tax rises. She said that the increase had not been “palpably excessive” so far. 

At the press conference Ms Evans said: “The sums which I’m hearing at the moment aren’t really coming into that palpably excessive range.”

She added that interfering in council tax would “be difficult because it’s an important part of local democracy”, and that there are lots of people who are eligible for support for council tax and are not claiming it.

Plans to extend Help to Buy are confirmed in the Welsh Government’s final budget for the year from April, which will be voted on in the Senedd today (Tues 7). 

The budget is expected to pass as it is part of the Welsh Government’s co-operational agreement with Plaid Cymru, who are expected to abstain from the vote.

Help to Buy provides a shared equity loan of 20% on new build properties. This means that homebuyers can provide a minimum deposit of 5%. The loan must be repaid over a period of 25 years.

According to the Welsh government, all properties sold under the plan must have a minimum EPC B energy efficiency rating from 1 April, when the price cap will be raised to £300,000.

Ms Evans told the press conference that the funding “will assist Help to Buy to adapt to changes in the housing market and address the impact of the current economic climate on potential homeowners”.

The final budget also says that “close to £100m” will be allocated towards measures “to help people stay in their homes and also to support social housing which aim to help people avoid homelessness, prevent repossession and create more social housing”.