Government extends Help to Buy practical completion deadline

The government has extended the Help to Buy practical completion deadline by six weeks to 17th March.

In a letter to the Home Builders Federation, housing minister Lucy Frazer confirmed that housebuilders will now have until 17th March to achieve practical completion of homes under the Scheme.

Frazer said: "Over the past month, I have received a number of letters from developers, customers and MPs requesting further forbearance in relation to the practical completion deadline... We have been consistent with the long stop dates since the scheme was launched and Homes England have undertaken regular engagement with the sector where they have stressed that developers should only accept orders that will meet all of the deadlines. As such it is disappointing to understand some developers are now asking for additional forbearance.

"I understand from Homes England that a number of these developments are delayed by longstanding issues which are unlikely to be resolved in advance of the legal completion deadline of 31 March. In these cases, it is crucial that developers, in compliance with their contractual obligations, refund customer reservation fees as soon as possible.

"However, after taking advice from my officials I am prepared to offer a further six weeks forbearance to 17 March with respect to the enforcement of the practical completion deadline to support the few remaining transactions over the line. Beyond this, there will be no further forbearance on the practical completion deadline as I believe this will put customers at risk of not being able to legally complete before 31 March."

If developers wish to make use of the forbearance, they will need to provide Homes England with details of the plots they require the forbearance for, the reasons for the delay as well as the date they expect the plot to complete by.

Frazer added that there will be "no leniency on the final legal completion deadline of 31 March 2023". Therefore homes that do not legally complete by 31st March will not be able to access the Help to Buy equity loan.