Buying your first home can be difficult, but there’s help available for those looking to get onto the property ladder. This article will explore five of the best help-to-buy schemes available to first-time buyers in the UK, providing various options for people purchasing their first property in 2025.
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Shared Ownership Scheme
This scheme is available only to first-time buyers and allows them to buy a share of a property and pay rent on the rest. Buyers can increase ownership of the property over time until they own it outright, and shares can range from 25% to 75% of the property’s total value.
This is a popular scheme available for new build homes and some existing properties, but it’ll depend on availability in your area.
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Lifetime ISA (LISA)
Another popular option for first-time buyers is the LISA, which allows you to save up to £4,000 a year with a 25% government bonus added to anything you save.
This means you could earn up to £1,000 on top of your own savings annually, which can be used for any first property purchase worth up to £450,000. You can also use funds for retirement savings if you’d prefer.
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First Homes Scheme
This one is still being rolled out and again, is just for first-time buyers. It aims to provide a discount of between 30% and 50% for new-build properties bought by key workers such as NHS staff and police officers. This discount will be retained when the property is sold so future buyers can also benefit.
Availability will vary on this one based on your region.
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Mortgage Guarantee Scheme
This help-to-buy scheme allows first-time buyers to purchase a property with just a 5% deposit. The government provides a guarantee on mortgages of up to 95% of the property’s value.
Rolled out in 2021, this scheme has been extended to support housing market growth and provide options for those unable to afford large deposits when buying their first home.
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Local Authority Affordable Home Ownership Schemes
Local authorities around the UK offer homeownership schemes that include shared ownership or low-cost home ownership options. These are designed to help people who have struggled to get onto the property ladder but are only available in certain areas.
There are also fairly strict eligibility criteria based on where you live and how much you earn, with priority given to locals looking to buy properties in the area.
Conclusion
With plenty of options available, we hope this article has helped you find your way to your first home in the year ahead. It’s important to understand the eligibility requirements for each option, however, and remember to save for any additional costs like solicitor fees, surveys, and Stamp Duty. You should also ensure these schemes are suitable in the long term and that you can continue to afford them.
For advice around buying your first home, call our team on 020 8366 4400 or email enquiries@cedarhfs.co.uk.