A guide to the latest government home buying schemes

The UK government has a long history supporting home buyers. The earliest, large-scale, government backed initiative was the Right to Buy scheme, which was launched in 1980 to put affordable homeownership on the map. Here the Local Government Association explains more about the scheme – which is still in operation today – and its success so far:

“The Right to Buy scheme allows most council tenants the opportunity to buy their council home at a discount. The scheme has helped countless families to get on the housing ladder, and more than 2 million sales to tenants have occurred since the scheme’s commencement… The Government has made numerous changes to the scheme over the 40 years since its implementation.”

Today, the Right to Buy scheme isn’t the only home buying initiative that’s here to help. Read on to discover a complete guide to the latest government home buying schemes available and how they can help.

First Homes Scheme

Available to first time buyers in England, the First Homes Scheme allows those eligible to purchase new build properties at a significant discount. Under the scheme, homes can be purchased for between 30 and 50% below market value to make purchasing a first property more accessible and affordable.

To be eligible, the applicant(s) must be aged 18 or over, be a first time buyer, be eligible for a mortgage on at least half the price of the property, and earn no more than £80,000 per year before tax (£90,000 when buying in London) either individually or jointly.

Shared Ownership

Another popular home buying initiative, this time available UK-wide, the Shared Ownership scheme involves the buyer purchasing a share of the property and paying rent on the remainder. This is available to first time buyers and repeat purchasers, with the lower deposit requirements helping applicants overcome one of the biggest hurdles of UK property ownership.

When buying through the Shared Ownership scheme, you can increase your ownership stake in the property over time. This is known as ‘staircasing’.

Mortgage Guarantee Scheme

For lower deposits for first time buyers and home movers on properties priced up to £600,000, there’s another government home buying scheme that’s here to help. The Mortgage Guarantee Scheme supports lenders offering 95% loan-to-value mortgages, helping buyers purchase with a 5% deposit.

Lifetime ISA (LISA)

The Lifetime ISA (LISA) enables those aged between 18 and 39 to save money towards their first home or alternatively for retirement. Using a LISA, you can save up to £4,000 per year and receive a generous 25% bonus from the government. Any funds saved using a Lifetime ISA can be used alongside mortgage borrowing to get onto the property ladder.

Right / Help to schemes

There are several Right and Help to schemes to explore. Right to Buy is one of the longest running and is available to qualifying council tenants in England.

Under the scheme, tenants may be able to buy their home at a significant discount, with exact discounts dependent on the length of their tenancy. The Right to Acquire scheme works in a similar way but applies to tenants with selected housing associations. The newest scheme in the Right to series is Right to Shared Ownership, which allows some tenants in new-build homes to purchase a share of the property they already rent.

If you have ambitions to build your own property, Help to Build is here to support you. This government equity loan is available to people in England and Wales, and is applicable to self-build and custom build properties. There are also Right to Buy schemes for Welsh residents (available until September 2026) and members of the UK Armed Forces.

For more advice on the latest government home buying schemes, please contact our team today.