Under previous guidelines, housebuilders were required to reach practical completion by 31 December this year, known as the first longstop date.
The Department for Levelling Up, Housing and Communities (DLUHC) said that to “avoid customer detriment” this date will be extended in certain circumstances.
A homebuilder needs to notify the DLUHC in writing that it is unlikely to reach the practical completion by 31 December but will reach this on or before 31 January 2023.
Practical completion takes place on or before 31 January 2023.
The extension is available for homebuyers with authority to proceed or authority to exchange in progress. Homebuilders need to notify Homes England before 20 December.
The DLUHC said that this “aims to give homebuyers enough time to legally complete before the scheme ends on 31 March 2023”.
A DLUHC spokesperson said: “Supporting aspiring homeowners is a government priority. We have extended the Help to Buy deadline to make sure people do not lose out because of delays to completing their homes.
“Housebuilders must ensure they finish building work on all properties by 31 January. The legal completion deadline remains 31 March.”
Help to Buy closed for new applicants on 31 October, with brokers at the time saying that Help to Buy closing for new applications would leave a mixed legacy, as it helped many onto the property ladder but its focus on new build and lack of replacement was an issue.
Completions for Help to Buy in Q2 came to 8,018 properties, down 26 per cent on the same period last year, which experts said was due to the impending closure of the scheme.
