Help to Buy extension will provide 120,000 new homes
Chancellor George Osborne has announced that government scheme Help to Buy will be extended until 2020 and will support the construction of 120,000 new homes.
According to propertywire.com, the scheme allows buyers to acquire a loan of up to 20 per cent of the property's value from the government. Buyers are then left with a 75 per cent mortgage and only need to put down a five per cent deposit.
Originally, it was planned that Help to Buy would end in 2016, but Mr Osborne has decided to extend it to encourage housebuilders to create even more homes. Only phase one of the Help to Buy scheme, which applies to the purchase of new builds only, will be lengthened.
Mark Carney, head of the Bank of England, criticises the decision and claims there is a risk of a property price bubbles occurring. Although rising house prices aren't as big a problem for people wanting to move to the North East, compared with those who want to live in London or the South East.
Shadow chancellor Ed Balls says that only people buying properties under £400,000 should be able to apply for the scheme, because the UK is in need of affordable housing. At the moment, anyone buying a house worth up to £600,000 can register, reports mirror.co.uk.