Government needs to step in and help house buyers who face losing their homes

The building of new homes across the UK is being delayed and the Government needs to step in a rescue two of its property incentives if house buyers are not to face a cliff edge at the end of March, say leading tax and advisory firm Blick Rothenberg

Heather Powell , a partner and head of property at the firm said: “ There are two government incentives which face a “cliff edge” the Help to Buy Scheme and Stamp Duty relief which end or change significantly at the end of March. And if the government don’t step in home buyers could lose the homes, they reserved months ago.

She added: “ The problem is that despite the fact that Covid cases are falling construction workers are receiving texts that they have been in contact with someone who has tested positive and that they should self-isolate for ten days. The results of this are that house building is being seriously delayed and many homes could be delayed beyond March 31st.

“Whilst no one would question the need to comply with the instruction the Government needs to consider the law of unintended consequences and take appropriate action to protect the position of the innocent” .

Heather said “Buyers who will not be eligible for “Help to Buy” from 1 April 2021, will have to find alternative financing for the home they reserved many months ago. When the loss of the Stamp Duty relief is added in (which could add up to £15,000 to the cash they need to find), many may lose their home simply as a result of businesses and individuals complying with the Government rules on self-isolation”.

Heather said : The Government needs to step in and agree that all buyers in this position that are currently eligible for the “Help to Buy” support and the Stamp Duty Relief – even if their purchase completes after 1 April 2021, giving peace of mind to all buyers in this position, and ensuring that no one is tempted to flout the pandemic isolation rules.”