Buying a New Build using HTB? Watch Your Dates

Safe'n'Sound

I have very recently been informed by the developer that my reserved new build home is no more. Well, not for me anyway. It all centers around the new delays in getting the house built and to the legal completion stage. The foundations are in, drains are covered and ground concrete has been set. The next stage is bricks/walls and upwards. We were forecast to move in Sep 2020 but that is now Jun-Aug 2021 due to it taking (the very large developer) 4 times more because of social distancing. This means we would have to use the new Apr 2021 HTB scheme which has an area price cap. Our reservation price is above that cap, too much to sort ourselves. There is talk of a cutoff date Dec 2020, as in if your house is not built by then, move onto the Apr 2021 HTB rules. I have asked HTB and awaiting confirmation before I throw the towel in.
I know some may say this is a blessing in disguise, but I mostly disagree. We were really set on this home as FTB's.

Vestraun

The bigger thing for me would be waiting nearly a full year before moving to your new home surely? 

onetimeatponycamp

There are rumours of govt plans to try and boost the market, you may well find HTB ends up getting extended. Having said that it’s an awfully long time to wait!

Safe'n'Sound

I started this thread to warn others that are similar to my position. The replies seem to be about me waiting for the build to complete. When you find the right one, you're prepared to wait another 9months

robrymond

Safe'n'Sound said:

I started this thread to warn others that are similar to my position. The replies seem to be about me waiting for the build to complete. When you find the right one, you're prepared to wait another 9months

This is an issue for many people and the government seem to be ignoring it, and Martin Lewis despite being questioned lots has not bothered to chase it either.

Safe'n'Sound

Latest seems to be the developers getting together to lobby the Government about a possible extension of the current (pre Apr 2021) rules. Watch this space

robrymond

Safe'n'Sound said:

Latest seems to be the developers getting together to lobby the Government about a possible extension of the current (pre Apr 2021) rules. Watch this space

Are we expecting an announcement this week then?

ladybird93

Safe'n'Sound said:

I have very recently been informed by the developer that my reserved new build home is no more. Well, not for me anyway. It all centers around the new delays in getting the house built and to the legal completion stage. The foundations are in, drains are covered and ground concrete has been set. The next stage is bricks/walls and upwards. We were forecast to move in Sep 2020 but that is now Jun-Aug 2021 due to it taking (the very large developer) 4 times more because of social distancing. This means we would have to use the new Apr 2021 HTB scheme which has an area price cap. Our reservation price is above that cap, too much to sort ourselves. There is talk of a cutoff date Dec 2020, as in if your house is not built by then, move onto the Apr 2021 HTB rules. I have asked HTB and awaiting confirmation before I throw the towel in.
I know some may say this is a blessing in disguise, but I mostly disagree. We were really set on this home as FTB's.

That's so awful for you and can totally understand your frustrations. I'm hoping to buy a new build next year using the HTB scheme but as the development first phase has been pushed out to June 2021 (from Feb 2021) I won't be eligible for the scheme if if changes to first time buyers only as I have owned a property in the past. They really should be extending the scheme as it stands now as surely the developers are going to have problems selling now due to the current climate anyway?!

robrymond

ladybird93 said:

Safe'n'Sound said:

I have very recently been informed by the developer that my reserved new build home is no more. Well, not for me anyway. It all centers around the new delays in getting the house built and to the legal completion stage. The foundations are in, drains are covered and ground concrete has been set. The next stage is bricks/walls and upwards. We were forecast to move in Sep 2020 but that is now Jun-Aug 2021 due to it taking (the very large developer) 4 times more because of social distancing. This means we would have to use the new Apr 2021 HTB scheme which has an area price cap. Our reservation price is above that cap, too much to sort ourselves. There is talk of a cutoff date Dec 2020, as in if your house is not built by then, move onto the Apr 2021 HTB rules. I have asked HTB and awaiting confirmation before I throw the towel in.
I know some may say this is a blessing in disguise, but I mostly disagree. We were really set on this home as FTB's.

That's so awful for you and can totally understand your frustrations. I'm hoping to buy a new build next year using the HTB scheme but as the development first phase has been pushed out to June 2021 (from Feb 2021) I won't be eligible for the scheme if if changes to first time buyers only as I have owned a property in the past. They really should be extending the scheme as it stands now as surely the developers are going to have problems selling now due to the current climate anyway?!

That is the thinking, but at the moment I only see a bunch of news stories from end of April saying 'they may look to extend' and not a whole lot of discussion on the point since. Incredibly frustrating when our dream plot is about to disappear if they don't do something.

Safe'n'Sound

robrymond said:

That is the thinking, but at the moment I only see a bunch of news stories from end of April saying 'they may look to extend' and not a whole lot of discussion on the point since. Incredibly frustrating when our dream plot is about to disappear if they don't do something.

In the pre-lockdown days, this would have been brought up over a fine cognac in comfy leather seats at a Gov fundraiser event. It's hard to lobby these things now and will most likely missed in the junk mail of Gov ministers. It's probably the most frustrating thing, knowing the obvious is being missed and all it takes is a memo to the dpt involved.

robrymond

Safe'n'Sound said:

robrymond said:

That is the thinking, but at the moment I only see a bunch of news stories from end of April saying 'they may look to extend' and not a whole lot of discussion on the point since. Incredibly frustrating when our dream plot is about to disappear if they don't do something.

In the pre-lockdown days, this would have been brought up over a fine cognac in comfy leather seats at a Gov fundraiser event. It's hard to lobby these things now and will most likely missed in the junk mail of Gov ministers. It's probably the most frustrating thing, knowing the obvious is being missed and all it takes is a memo to the dpt involved.

I've tweeted and emailed Robert Jenrick but no replies. I'm trying to lobby and hopefully others do too.