Help to Buy: Equity Loan 2021-2023 Programme: developer’s guidance and funding administration agreement published

On 28 August 2020, Homes England published developer participation and registration guidance, and their revised version of the funding administration agreement in connection with the Help to Buy: Equity Loan 2021-2023 Programme (new scheme).

The new scheme assists eligible purchasers to buy new-build homes in England from 1 April 2021 until 31 March 2023.

The funding administration agreement is the standard contract that developers and house builders enter into with Home England; it sets out eligibility criteria and requirements.

The industry has been awaiting the revised documentation, given that the Ministry of Housing, Communities and Local Government announced in February 2020 that developers wishing to use the Help to Buy scheme must adhere to a range of new quality measures to improve consumer experience and safety.

The new scheme is separate from the current Help to Buy scheme that ends in March 2021. Builders cannot participate in the new scheme, market, or offer it to customers until they are fully in contract with Homes England under a funding administration agreement relating to the new scheme.

The customer documents (for example, the buyers’ guide) will be published shortly, and Home England has stated that it will notify builders as soon as they become available.