The Help to Buy equity loan scheme was probably the most well-known government housing programme. It closed to new applications in October 2022 (with completions finishing in March 2023), but its closure doesn't mean government help has dried up. Several other schemes remain, each with different eligibility criteria and limitations.
Lifetime ISA
The Lifetime ISA (LISA) is arguably the best tool for first-time buyers who are still saving. You can put in up to £4,000 per year and the government adds a 25% bonus — that's up to £1,000 free money every year. The bonus is paid monthly, so your savings grow throughout the year.
Key restrictions: you must be aged 18-39 to open one, the property must cost £450,000 or less, and you must have had the account open for at least 12 months before using it. If you withdraw for anything other than a first home or retirement (after 60), you face a 25% penalty on the withdrawal — which actually means you lose more than the bonus.
Shared Ownership
Shared ownership lets you buy a share of a property (typically 25-75%) and pay rent on the rest. You only need a mortgage and deposit for your share, making it more accessible than buying outright. Over time, you can "staircase" — buy additional shares until you own 100%.
The scheme is available through housing associations and is aimed at people who can't afford to buy a home on the open market. Household income must generally be below £80,000 (£90,000 in London). Since April 2021, you can staircase in 1% increments (previously 10% minimum), making it cheaper to increase your share gradually.
Downsides? You're paying rent AND a mortgage. The rent typically increases each year (often by RPI + 0.5%). Selling a shared ownership property can be more complex than a standard sale, and some lenders have limited shared ownership products.
First Homes scheme
First Homes offers new-build properties to first-time buyers at a discount of 30-50% below market value. The discount stays with the property in perpetuity, so when you sell, the next buyer gets the same percentage discount. Eligibility varies by local authority, but household income must generally be under £80,000 (£90,000 in London).
Availability is patchy — it depends on developers including First Homes in their new developments, which they're required to do in some planning agreements. Check with your local council or housing association.
Mortgage Guarantee Scheme
This government-backed scheme encourages lenders to offer 95% LTV mortgages by providing them with a guarantee against losses. You don't apply for it directly — you simply take out a 95% mortgage from a participating lender. Most major lenders are part of the scheme.
The practical effect is that 5% deposit mortgages are more widely available than they might otherwise be. Rates on 95% LTV products are higher than larger deposit deals, but the scheme has at least kept them on the market during periods when lenders might have withdrawn them.
Right to Buy
If you're a council tenant in England, you may be able to buy your home at a discount through Right to Buy. The discount depends on how long you've been a tenant: up to £96,000 in England (£127,900 in London). You need to have been a public sector tenant for at least three years.
Housing association tenants in England may have access to the similar Right to Acquire scheme, though discounts are smaller (up to £16,000 depending on location).
What's no longer available
For the avoidance of doubt, the Help to Buy equity loan (which provided a 20% government loan — 40% in London — on new-build purchases) is closed. The Help to Buy ISA is also closed to new savers, though existing holders can still use their bonus until November 2029.