The government plan to invest £22bn in Help to Buy by March 2021 to fund the extension, which is expected to help up to 360,000 new homes be purchased.
The government said: “Conditions have improved in the market since 2013: there is a growing number of high loan to value products available to first-time buyers and housing supply continues to increase.
“To ensure future help is targeted at those who need most help into homeownership, the Budget announces that from April 2021 a new Help to Buy Equity Loan scheme will run for two years before closing in March 2023.”
There are no further plans to extend the Help to Buy Equity Loan scheme after March 2023.
Kevin Roberts, Director of Legal & General Mortgage Club, commented on 29th October: “Today’s extension of the Help to Buy scheme to 2023 has provided much-needed clarity over the scheme. Not only do housebuilders now have more certainty for longer-term planning and building the thousands of new homes our country so desperately needs, but it also gives potential buyers who are saving for a deposit the peace of mind that they too can benefit from the scheme over the coming years.”