The Government has stated that it “remains committed” to the Help to Buy Equity Loan scheme until 2021.
The statement comes just a few days after several reports suggested that the Government was considering the closure of the scheme prior to its scheduled end.
This news caused shares in building companies to take a significant hit, with price falls of around 5% for Barratt and Taylor Wimpey.
Having helped an estimated 14% of new build construction, the scheme has been seen as beneficial for both buyers and developers, with its reported scrapping being subject to heavy criticism.
The statement reads: “We remain committed to the Help to Buy Equity Loan Scheme to 2021, ensuring it continues to support homebuyers and stimulate housing supply.
“The Government also recognise the need to create certainty for prospective home owners and developers beyond 2021, so will work with the sector to consider the future of the scheme.”