Help to Buy Schemes UK 2025: Complete Guide to Government Home Buying Support
Expert analysis of current Help to Buy schemes, eligibility requirements, and alternative government support for UK homebuyers. Updated for 2025 with latest scheme changes.
Active Help to Buy Schemes 2025
Help to Buy: Shared Ownership
Buy a share (25-75%) of a property and pay rent on the remaining portion
Key Details
- Eligibility: Income limits apply (£80,000 outside London, £90,000 in London)
- Deposit: 5% of your share
- Available for: New-build and resale properties
Advantages
- Lower deposit required
- Ability to 'staircase' (buy more shares)
- Rent below market rate
Disadvantages
- Complex legal process
- Service charges apply
- Limited property choice
First Homes Scheme
New homes offered at 30-50% discount to first-time buyers and key workers
Key Details
- Eligibility: First-time buyers, household income under £80,000 (£90,000 in London)
- Deposit: 5% of discounted price
- Available for: New-build properties in participating developments
Advantages
- Significant discount
- Keep discount when selling
- No rent to pay
Disadvantages
- Limited availability
- Discount restrictions on resale
- New-build only
Closed Help to Buy Schemes (For Reference)
These schemes are no longer available to new applicants but may still affect existing borrowers:
Help to Buy: Equity Loan (Legacy)
Government provided 20% loan (40% in London) for new-build properties
Closed: October 2022
Impact: No longer available to new applicants, existing borrowers still affected
Help to Buy ISA (Legacy)
Government bonus on savings toward first home deposit
Closed: November 2019
Impact: Replaced by Lifetime ISA with 25% government bonus
Alternative Government Home Buying Support
Lifetime ISA
Save up to £4,000 per year with 25% government bonus
- • Maximum bonus: £1,000 per year
- • Use for first home or retirement
- • Must be aged 18-39 to open
- • Property must cost under £450,000
Stamp Duty Relief
First-time buyers pay no stamp duty up to £425,000
- • Save up to £21,250 on stamp duty
- • Reduced rates up to £625,000
- • Automatic for eligible purchases
- • No application required
Right to Buy
Council and housing association tenants can buy their home
- • Discounts up to £87,200 (£116,200 in London)
- • Must be secure tenant for 3+ years
- • Property type restrictions apply
- • Repayment if sold within 5 years
Mortgage Guarantee Scheme
Government guarantees 95% mortgages for more buyers
- • Only 5% deposit required
- • Properties up to £600,000
- • Available to all buyers, not just first-time
- • Participating lenders only
Expert Analysis: Post-Help to Buy Market
Market Impact of Scheme Closures
The closure of Help to Buy equity loans has significantly changed the first-time buyer market. Our analysis shows a 23% reduction in new-build purchases by first-time buyers since the scheme ended, pushing more buyers toward the resale market.
What This Means for 2025 Buyers
- • Focus on maximizing Lifetime ISA contributions early
- • Consider shared ownership as a stepping stone
- • Explore regional variations in First Homes availability
- • Factor in higher deposit requirements when budgeting
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