According to Tom Denman-Molloy, intermediary sales manager at Mansfield Building Society, with the termination of Help to Buy, buyers’ hopes would be dependent on other, currently running programmes that aid borrowers and the stance of certain lenders.

“While there may not be a direct replacement for Help to Buy, lender flexibility can significantly help borrowers realise their dreams of a new home”

Since its commencement in 2013, the Help to Buy programme has unquestionably had a big impact on the new-build market. With the help of an equity loan, more than 375,000 properties have been bought to date, totaling more than £23.7 billion in loans to borrowers.

Even if the completion date has been moved to the end of May 2023, Help to Buy is no longer a factor. That leaves potential purchasers of newly constructed homes debating their options and determining whether other Government support programmes would have an impact on their aspirations to own a home.

Given the opportunity to purchase a property for up to 50% less than its market value, the First Homes programme may merit further consideration for some people. Others will find joint ownership to be a more affordable choice, with the chance to gradually increase their holding over time.

The truth is that Help to Buy, a miracle cure that improves prospects for buyers looking to acquire a new-build property, is unlikely to be truly replaced.

The hopes of buyers will instead depend on other, already-in-place programmes intended to assist borrowers and – perhaps most importantly of all – the stance of specific lenders.

Finding reasons to say no

For borrowers trying to buy a newly constructed house, lender flexibility is essential.

It doesn’t matter if they use a government assistance programme or a mortgage that benefits from family support, such one that uses a guarantor, a donated deposit, or our Family Assist package.

We are aware that there are plenty of prospective homeowners who are eager to climb the housing ladder but are discouraged by the way some lenders determine affordability. It can be because the lender won’t take into account additional sources of income or because their situation appears to be more complicated than others.

We know that some lenders regard this type of property with a higher level of scepticism, so this alleged complexity is only increased by the fact that the property is a new build.

Borrowers of all types might find it difficult to get the financing they need for these purchases if lenders continue to conduct unduly demanding affordability assessments and look especially cautiously at new construction.

There are still certain lenders, like Mansfield Building Society, who prioritise manual underwriting and comprehending the specifics of each case. We are better equipped to assist borrowers buying a new-build property, regardless of how they want to finance that acquisition, by being more adaptable and diverse in the way we analyse situations.

While there may not be a direct replacement for Help to Buy, lender flexibility can greatly assist borrowers in realising their dreams of a new home.