The Government has extended the deadline for new builds to be completed so they can be eligible for purchase under the Help to Buy Equity Loan scheme.

The deadline was previously December 31 2020 but due to delays in development amid the pandemic it has been moved to February 28 2021.

The transaction would still need to legally complete by March 31.

Homes England also said it will work with buyers who have experienced severe delays if they had a reservation in place before June 30, in which case they could get an extension up to May 31 to legally complete.

There had been fears that buyers would miss out on the scheme due to delays as it is being replaced with a new version that is only open to first-time buyers and has regional price caps.

Housing minister Christopher Pincher said: “This Government is committed to helping a new generation to realise their dream of home ownership, and since 2010 we’ve helped more than 640,000 families into home ownership through our support including Help to Buy and Right to Buy.

“This announcement will help provide certainty and assurance for Help to Buy customers whose new homes have been delayed due to coronavirus and affirms the Government’s commitment to helping more people to own their own home.”

Commenting on the change, Alex Rose, director of new homes at Zoopla, said: “Demand for Help to Buy properties is unwavering, so this news is a temporary relief for housebuilders and agents alike, but most importantly to those thousands of buyers whose Help to Buy purchase might otherwise have been jeopardised.

“However, the devil is in the detail, and many would argue that a two-month extension might not give housebuilders enough time to meet these build deadlines.

“Residential construction is currently operating at between 60 – 85% of normal output after coronavirus halted work for upwards of six weeks across UK building sites. As a result, many developers are behind with their build schedules.”