Three schemes that will help you buy a new build home in 2020
17 July 2020If you’re considering buying a new build home in 2020 or looking to get on the property ladder, now couldn’t be a better time to start house hunting. When the Coronavirus lockdown came into effect in March, the housing market took a great hit. With viewings unable to go ahead and move-in dates having to be pushed back, the industry faced its biggest challenge in years. In fact, the Nationwide house price index for May showed the largest decline in 11 years with prices falling 1.7% from the previous month (source: BBC News). As the lockdown restrictions begin to lift, we are delighted to report that we’re seeing really strong sales activity across our new home sites, and with new initiatives as well as existing schemes available to help house hunters, this seems to be the sense across the industry. Here are just some of the reasons why you should be looking for a new home in 2020:
Say goodbye to Stamp Duty
On Wednesday 8th July 2020, the Government announced a Stamp Duty holiday for property buyers in England and Northern Ireland. The initiative, effective until 31st March 2021, has been created to boost the housing market. This is great news for house hunters as they will not have to pay Stamp Duty on any property up to £500,000. If you’re a property investor looking to invest in a Devonshire Home, you can still purchase a property up to £500,000 Stamp Duty free, but you will need to pay the 3% Stamp Duty surcharge.
If you’re looking to buy a new home in 2020, there are significant savings to be made here. Let’s look at our Copplestone home on plot 102 at our Crediton site, Tarka View, as an example. At a purchase price of £272,950, previously you would have had to pay a Stamp Duty fee of £3,650. Now, you don’t have to pay anything, leaving you free to put that money towards legal fees, moving costs or even new furniture.
The initiative has only been confirmed until 31st March 2021 so now is the perfect time to purchase a new home to ensure you benefit from a significant saving. Visit any one of our Marketing Suites and our Sales Executives can tell you more about the initiative and answer any questions you may have.
Take advantage of the Help to Buy Equity Loan Scheme before 2021
For house hunters hoping to use the Help to By Equity Loan scheme, they must purchase a new home this year to benefit from the current offering. Firstly, what is the Government Help to Buy scheme? This initiative currently allows first time buyers and existing homeowners to purchase a new build home with just a 5% deposit. You will secure a mortgage for 75% of the total purchase cost and the Government will loan you the final 20%.
The current Help to Buy scheme is valid until 31st March 2021 and after that, the Government is set to bring in an entirely new scheme. In order to benefit from the current Help to Buy regulations, the home that you are planning to purchase must be build complete by 28th February 2021. This will then give you time to complete on your new home before the expiry date of the current regulations on 31st March 2021 (source: House Builder).
This information is particularly important if you are an existing homeowner hoping to use the scheme as under the new rules that come into effect in April 2021, existing homeowners will no longer qualify. The new scheme will have tighter eligibility requirements which will include:
- First time buyers only
- Regional property price caps
- Price cap of £349,000 in the South West (£600,000 under the current scheme)
The Help to Buy Equity Loan scheme can be of great assistance if you are struggling to raise the deposit for your new build home. Let’s look at one of our three bedroom homes at our new Bovey Tracey site, Longston Cross, as an example. If you were looking to purchase the Bickleigh on plot 10 at the purchase price of £294,950, you would need a deposit of £14,747.50. You would secure a mortgage for £221,212.50 and the Government would lend you £58,990.
If you’re an existing homeowner hoping to use the Help to Buy Equity Loan scheme this year, please do visit one of our Marketing Suites as soon as possible and our Sales Executives will be able to answer any questions you may have and discuss a realistic buying timeframe to ensure you are eligible for the scheme.
Use Devonshire Move
We understand how stressful it can be when you’ve found your dream new build home, but you’ve still got to sell your existing property. The worry that another house hunter will come along and snap up your desired home is enough to keep you awake at night so that is why we offer the Devonshire Move scheme. By using this scheme, we will take your new home off the market for up to four weeks whilst we help you find a buyer for your existing home. In addition, we will even pay your estate agent fees (subject to Terms and Conditions).
You can read more about the Devonshire Move scheme here, or contact our Sales Executives in any of our Marketing Suites who will be pleased to tell you more and answer any questions you may have.
Those are just some of the initiatives and schemes that can help you move this year. Our sites are currently open by appointment only so if you would like to find out more about our new homes, please do not hesitate to give us a call or email us to book your appointment. The contact details for each site can be found in the banner of each site page. Click here to view our latest developments.