The Chancellor of the Exchequer, George Osborne has announced that the Government’s Help to Buy for new built homes will run until 2020.
The Chancellor aims to deliver up to 120,000 extra new homes via the extension, which takes the scheme to four years longer than originally planned.
The announcement was made on Sunday on the Andrew Marr Show on the BBC. It will form part of Osborne’s Budget on Wednesday (March 19).
The scheme means buyers of new homes worth up to £600,000 can seek equity loans from the government. There is offer a separate deposit guarantee scheme to encourage lenders to offer mortgages to people with just 5% deposits.
Help to Buy is credited with driving the sudden recovery in house-building. The equity loan scheme has so far helped over 25,000 households to afford to buy or reserve a new-build home. Until now the plan was to set aside £3.7bn for the scheme by 2016.