Available Home Ownership Government Schemes

Stamp Duty Land Tax (SDLT) is a tax that must be paid when buying a property in England or Northern Ireland. SDLT is charged at different rates based on the portion of the property’s value within certain price bands. For those who are not purchasing their first home, SDLT generally applies only to residential properties over £125,000. However, first-time buyers are eligible for stamp duty relief if they purchase a property worth £500,000 or less and intend to use it as their only or main residence.

Benefits

• Tax relief for first-time buyers

Requirements

• First-time buyers purchasing residential property of £500K or less

The Lifetime ISA (LISA) is a savings product designed to help younger people save for their first home or for later in life. You can save up to £4,000 each year, and the government will add a bonus of 25% to each new payment. After 12 months of opening the LISA, you can withdraw funds without a charge if they are used as a deposit for your first home, subject to certain conditions.

Deposit | Minimum £1 payment required to open the account

Benefits

• Government contributes 25% on up to £4K every year

Requirements

• First-time buyer aged 18-39 purchasing a property up to £450K in value

The mortgage guarantee scheme, launched in April 2021, aims to increase the availability of 5% deposit mortgages for credit-worthy households by providing government-backed guarantees on new 95% mortgages until December 31, 2023. This program is a continuation of the Help to Buy: Mortgage Guarantee Scheme launched in 2013 following the financial crisis, which restored the market for low-deposit mortgages and allowed more people to purchase new or larger homes. To learn more about how to apply for a 5% deposit mortgage, you can contact a mortgage broker or lender participating in the scheme.

Benefits

• For buyers looking to purchase a property with a 5% deposit
• Government-backed mortgage guarantee scheme

 Requirements

• Available to first-time buyers and existing homeowners looking to move
• 95% LTV mortgage from participating lenders across the UK
• £600K Maximum property price

First Homes is a government scheme aimed at helping local first-time buyers and key workers get onto the property ladder by offering homes at a discount of at least 30% compared to the market price. In some areas, the discount could be as high as 50%, which provides even greater savings. These discounts are applied to the homes forever, meaning that generations of new buyers and the local community will continue to benefit every time the property is sold.

Benefits

• Homes discounted by at least 30% compared to market prices.
• Deposits and mortgage repayments are significantly cheaper.

Requirements

• First-time buyer
• Earn less than £80K per year (£90K in London) or lower (if figure is set by council)
• Mortgage covers at least 50% of purchase price
• Councils may apply additional eligibility criteria

Shared Ownership is a government scheme that allows you to buy a share of a home worth between 10% and 75% of its market value, and rent the rest from a housing provider. You can purchase more shares in your home in the future, a process known as “staircasing,” which will reduce the amount of rent you pay.

To make Shared Ownership more accessible, the government introduced a new model in April 2021, which lowered the minimum share required for purchase from 25% to 10%, reduced the minimum share that can be purchased through staircasing from 10% to 5%, and introduced a new form of staircasing that allows you to purchase an extra 1% of your home every year.

Under the new model, your housing provider will support you with the cost of essential maintenance and repairs to your home for a period of 10 years. While new model homes have already come onto the market, it’s important to check which model you’re applying for since old model homes are still available as well.

Deposit | Usually between 5-25% of the value of your share (amount is determined by your mortgage provider)

Ownership | Leasehold interest worth between 10-75% of the home’s value (local conditions may apply)

Benefits

• Smaller mortgage and deposit required
• Helps people get on the property ladder

Requirements

• Gross annual household income of £80K or less (£90K or less for London purchases)
• First-time buyer, existing shared owner, or you used to own a home but can’t afford to buy one now

Shared Ownership Resales offer an opportunity for those who cannot afford the deposit and mortgage payments for a house that meets their needs. It allows you to buy an initial share of a home worth between 10% and 75% of its market value and pay rent to the housing provider on the remainder. You can buy more shares in the future through the staircasing process, which reduces the amount of rent you pay.

When purchasing a Shared Ownership Resale home, you typically buy the existing shared owner’s share of the property. You will pay the same amount of rent and service charge as the existing shared owner once you have purchased their share from them.

Alternatively, you can purchase a larger share of the home than the existing shared owner, and the amount of rent you will have to pay will reduce proportionately.

If you purchase a new model Shared Ownership Resale home, you will benefit from certain features of the new model, including new forms of staircasing. However, the 10-year period during which the landlord is required to support shared owners in new model homes with the cost of essential repairs and maintenance may not apply. This feature applies to new build homes during the first ten years following completion, therefore depending on when you purchase the property, the period may have expired.

Deposit | Usually between 5-25% of the value of your share (amount is determined by your mortgage provider)

Ownership | Between 10-75% of the home’s value

Benefits

• Smaller mortgage and deposit required
• Helps people get on the property ladder

Requirements

• Gross annual household income is £80K or less (£90K or less in London)
• First-time buyer, existing shared owner, or you used to own a home but can’t afford to buy one now