Help to Buy Valuation in 2026: What You Owe and Why the Valuation Matters
If you bought your home through the Help to Buy equity loan scheme and you are approaching year five, or you have already hit year six, there is a good chance you have questions about what you actually owe and what happens next.
This article covers exactly that. What the redemption process looks like, why you need a RICS valuation, how the repayment is calculated, and what the common mistakes are that cost people time and money.
The Scheme Is Closed — But 230,000 Loans Are Still Active
Help to Buy: Equity Loan closed to new applicants in October 2022. The final completions under the scheme were processed by May 2023. So if you are reading this, you already have the loan.
According to Homes England’s 2024/25 Annual Report, the agency is still managing over 230,000 active Help to Buy equity loan accounts. In 2024/25 alone, more than 27,000 households went through the full redemption process. That number is only going to grow as loans taken out between 2018 and 2023 reach the end of their interest-free period.
If you bought in 2019 or 2020, you are either already in or approaching the year when interest begins. That is what is driving most redemptions right now.
When Does the Interest Start?
The Help to Buy equity loan is interest-free for the first five years. In year six, interest begins at 1.75%. This rises every April by CPI plus 2%.
For the 2013 to 2021 scheme, the increase is RPI plus 1%, which has historically tracked higher.
This is not a trivial amount. On a 20% equity loan against a London property, you are carrying a loan that accrues interest annually — and that figure rises every year. Most people do not factor this into their long-term planning when they buy. By year six, it tends to come as a shock.
The Key Thing Most People Get Wrong: You Do Not Repay the Original Loan Amount
This is the single most important point in this article, and it is the one that catches people out most often.
You do not repay the amount you originally borrowed. You repay the same percentage of what your property is worth now.
Here is what that looks like in practice. Say you bought a property in London for £400,000 in 2019. You used a 40% equity loan (the London maximum), which at the time was £160,000. Your property is now worth £480,000 in 2026.
You repay 40% of £480,000 — which is £192,000. Not the £160,000 you originally borrowed.
If your property has risen in value, you pay more. That is how the scheme works. The equity loan tracks the market.
This is why the valuation figure matters so much. It is not a formality. It is the number your entire repayment calculation is built on.
What Is a Help to Buy RICS Valuation?
To redeem your Help to Buy equity loan, whether in full, in part, or because you are selling, you need an independent property valuation carried out by a RICS-registered valuer. This is a legal requirement under the scheme rules set by Homes England.
The valuation must be completed as a Red Book valuation — the RICS standard used for formal, legally recognised assessments. An estate agent’s opinion of value or a mortgage lender’s valuation will not be accepted. Homes England will reject it, and you will need to commission another one at your own cost.
The report is valid for three months from the date it is completed. If your redemption does not complete within that window, you will need a fresh valuation or a desktop extension.
How Long Does the Process Take?
From start to finish, a Help to Buy redemption typically takes 8 to 12 weeks if you are organised. The process runs through Target HCA (Homes England’s administrator) and follows a specific sequence:
- Log into your Target HCA account and request a redemption. You will receive a reference number.
- Book a RICS Red Book valuation. Do not do this until you know your funding is lined up, since the three-month clock starts from the valuation date.
- Instruct a solicitor with Help to Buy redemption experience.
- Submit the valuation report to Target HCA. They will calculate the exact repayment figure.
- Your solicitor handles the actual redemption and registration once funds are in place.
The most common delay is leaving the valuation too late and then finding it expires before completion. Book it once your funding route is confirmed, not before.
Can I Use a Desktop Valuation?
In some circumstances, yes. A desktop valuation can be used as an extension if your original RICS valuation has expired and you need more time. It is not a replacement for the initial valuation — Homes England requires an in-person inspection for that.
Desktop extensions are generally quicker, but they are only available within specific timeframes and at the discretion of the valuer. If you think you might need one, speak to your RICS valuer early.
Partial Redemptions: Can I Pay Off Some of the Loan?
Yes. Partial redemptions are permitted in minimum increments of 10% of the current market value. So if you have a 40% equity loan on a property worth £480,000, the minimum partial redemption would be 10% of £480,000, which is £48,000.
Each partial redemption requires its own RICS valuation. The remaining equity loan percentage reduces accordingly, and so do your ongoing interest charges.
For some homeowners coming up to year six and looking to reduce the interest burden, a partial redemption can be a financially sensible move even without a full exit from the scheme.
What Happens If You Have External Cladding?
If your property has external cladding, you must contact Homes England before commissioning any valuation. There are specific requirements around cladding properties, and the valuer may need additional information or specialist input before they can produce a compliant report.
This is particularly relevant for London flat owners in buildings affected by the post-Grenfell remediation process. Do not assume your property can be valued in the standard way without checking first.
When Does the Interest Start?
The Help to Buy equity loan is interest-free for the first five years. In year six, interest begins at 1.75%. This rises every April by CPI plus 2%.
For the 2013 to 2021 scheme, the increase is RPI plus 1%, which has historically tracked higher.
This is not a trivial amount. On a 20% equity loan against a London property, you are carrying a loan that accrues interest annually — and that figure rises every year. Most people do not factor this into their long-term planning when they buy. By year six, it tends to come as a shock.
Related Blogs
- Help to Buy Valuation in 2026: What You Owe and Why the Valuation Matters
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Why Use an Independent RICS Chartered Surveyor?
The scheme rules require a RICS-registered valuer, but the reason to use an independent firm goes beyond compliance.
An independent surveyor works for you, not for the lender or the scheme administrator. Their job is to assess the market value of your property accurately and produce a report that will be accepted by Homes England without question.
Using a firm that is both RICS-regulated and independent from your mortgage lender means you are getting a clean, unbiased figure. That matters when the repayment calculation is built entirely on that number.
FREQUENTLY ASKED QUESTION
Frequently Asked Questions
Do I need a RICS valuation to sell my Help to Buy property?
Can I use my mortgage lender's valuation for Help to Buy redemption?
What if my property has gone down in value?
How do I know if my surveyor is RICS-registered?
What is the difference between MRICS and FRICS?
Need a surveyor in Harrow? Get in touch
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