Lesley Griffiths AM, Minister for Communities and Tackling Poverty
The Help to Buy - Wales scheme has been very successful. The first phase of the scheme remains on track to support the construction of up to 5,000 new homes by the summer of 2016 and, to date, 75% of Help to Buy Wales investment has supported first time buyers. Today, I am pleased to announce the second phase of the Help to Buy - Wales scheme.
Our budget proposals for 2016-17, announced by the Minister for Finance and Government Business earlier this week, demonstrate our continued commitment to the scheme. This second phase will invest up to £290 million, with a view to supporting the construction of over 6000 additional new homes by 2021.
Help to Buy - Wales is delivering exactly what it was set out to do, by helping first time buyers get onto the property ladder and helping families secure a decent, affordable home. It is also continuing to provide a welcome boost to the housing industry by supporting the construction of new homes across Wales. Investing in housing has clear benefits for the economy, supporting the construction industry and associated supply chain.
We are already seeing a sustained growth in new house building which Help to Buy – Wales has helped to support. The scheme will continue to help people buy their own new-build home, be it their first home or help to move onto another property and will continue to increase the supply of low-deposit mortgages for credit worthy households.
All scheme criteria will remain the same, as it has proved appropriate and relevant to Wales. The Welsh Government will continue to make available shared equity loans of up to 20% of the price of a property on new build homes up to the value of £300,000. Loans of up to £60,000 will, therefore, be available. These will be interest free for five years and at below-market rates thereafter.
Details of the scheme are available on the Help to Buy – Wales website and terms and conditions associated with the scheme are set out in the Help to Buy – Wales Buyers’ Guide and supporting documentation.
This announcement confirms this Government’s commitment to the Help to Buy - Wales scheme to ensure Wales remains competitive and continues to support both the house building sector and people in Wales to buy their own home.