The deadline to submit new applications to the scheme is 31 October, around two weeks away, and applicants who have applied have to meet the 31 March completion deadline and need to have keys by 6pm on that day to be eligible for a loan.
Help to Buy completions have been falling steadily over the last year or so, down 65 per cent in Q1 2022 and down 41 per cent in Q4 last year.
Advisers who are seeing families helping children or grandchildren using the scheme should not only make them aware of the deadlines but also make them away of other options if they miss the cut offs.
Missing the deadlines could mean that buyers would need to find a deposit that is equal to five per cent of the full purchase price of the property, and Air said equity release could help fill this potential gap.
Wilson said: “While there is no doubt taking your first steps onto the property ladder at the moment is likely to be daunting, the end of October deadline is going to force people to either commit to buying something before March or miss this government support.
“The changes to the stamp duty thresholds will no doubt help to mitigate this for some but the fact remains that others will miss out and need to consider either putting off their dream or looking for additional help.”
He added: “Industry data suggests that one in five equity release customers use some or all of the proceeds of their withdrawal to support younger relatives so advisers need to help clients understand that there is a potential lifeline. Naturally, older people need to carefully consider the impact on their own finances which are also likely to be under pressure.
“Getting specialist advice is vitally important as it will help people to fully understand their options and make the right choices for their individual circumstances.”
