Housebuilder Crest Nicholson has asked the government to provide guidance about the Help to Buy scheme.
The flagship housing policy is set to end in 2016 and has helped to rejuvenate housebuilding rates. However, Crest Nicholson and others are concerned these rates will decline when the scheme comes to an end, according to the Financial Times.
Chief executive Stephen Stone said: “Clearly, it would be great to have a transition period. For the government to give some forward guidance on that would be very helpful.”
He added he did not agree with the scheme being extended indefinitely and called it a one-off stimulus, saying: “I don’t think it’s right to have an incentive like this in perpetuity.”
Some are concerned the £3.5 billion put aside for the scheme will run out sooner than anticipated. Figures released yesterday (January 29th) by the government reveal the initative’s growing popularity among aspirant first-time buyers. There have been 12,875 new homeowners created by Help to Buy since its inception, which is equivalent to 46 a day.
The Bank of England recently denied it was planning to lower the maximum property limit in an attempt to deter interest from London and the south-east.