Government schemes can make homeownership more accessible, particularly for first-time buyers. Here's what you need to know about the main options available.
First Homes Scheme
The First Homes scheme offers new build homes at a discount of at least 30% off the market price.
Eligibility
- First-time buyers only
- Household income under £80,000 (£90,000 in London)
- Must use a mortgage for at least 50% of the purchase price
- Discounted price must be no more than £250,000 (£420,000 in London)
How It Works
The discount remains with the property forever - when you sell, the next buyer (who must also meet eligibility criteria) benefits from the same percentage discount.
Shared Ownership
Shared Ownership lets you buy a share of a property (between 25% and 75%) and pay rent on the rest.
Key Features
- Lower deposit required (typically 5-10% of your share)
- Option to increase your share over time ("staircasing")
- Available for new builds and some resale properties
Eligibility
- Household income under £80,000 (£90,000 in London)
- First-time buyers, previous homeowners who can't afford now, or existing shared owners
- Must be unable to afford to buy on the open market
Lifetime ISA
While not a housing scheme directly, the Lifetime ISA can significantly boost your deposit:
- Save up to £4,000 per year
- Government adds 25% bonus (up to £1,000 annually)
- Must be used for first home worth £450,000 or less
- Must have been open for at least 12 months before use
Mortgage Guarantee Scheme
This scheme helps buyers with small deposits (5%) access mortgages by providing a government guarantee to lenders.
Top Tips
- Check eligibility early - requirements can be strict
- Research which schemes apply to your chosen development
- Speak to a mortgage advisor familiar with government schemes
- Factor in all costs - some schemes have additional fees
- Consider long-term implications, especially for Shared Ownership