The Help to Buy equity loan scheme has been extended to 2020, the government has confirmed.
The chancellor George Osborne said that that the government had committed £6 billion to extending the successful equity loan initiative until “at least 2020”, giving developers certainty over the planning of future schemes and allowing them to "continue to boost housing supply".
He also confirmed the first annual allocation of almost £1.5 billion for the scheme covering the 2016-17 period. The Help to Buy equity loan applies to new build properties priced up to £600,000.
Government figures show that in the first two years of the Help to Buy equity loan scheme, launched in April 2013, 47,018 properties were bought under the initiative. Meanwhile, the Help to Buy mortgage guarantee scheme which began in October 2013, yielded 46,877 mortgages between October 2013 and March 2015.
Osborne said that collectively, the equity loan scheme, Help to Buy mortgage guarantee scheme and the government's NewBuy scheme had helped "nearly 100,000 working people across the UK achieve their aspiration of buying a new or bigger home".
Stewart Baseley, executive chairman of the HBF, said: "Help to Buy equity loan has stimulated demand for new homes and led to a sharp rise in private housebuilding. Extending the scheme to 2020 provides certainty of demand that allows home builders to recruit the people and invest in the land and supply chains required to support further sustained increases.
"The mortgage guarantee scheme has also benefitted new home building, both directly by increasing demand for new homes, and indirectly by helping new home buyers to build housing chains."