Category: First Time Buyer, Guides & Advice
Finding the right support to get on the property ladder
For many first-time buyers in the UK, taking the first step onto the property ladder is harder than ever. Rising house prices, higher rents, and the difficulty of saving for a deposit can make homeownership feel out of reach, especially for those on lower incomes.
To help overcome these challenges, there are several government schemes for first-time buyers offering financial assistance, reduced-price homes, and alternative paths to ownership. Whether you're looking for a Help to Buy scheme, shared ownership scheme, or council house buying scheme, understanding your options is the key to unlocking affordable homeownership.
Quick comparison: government schemes for first-time buyers
Scheme | Best for | Key benefit | Eligibility requirements |
Help to Buy ISA | Saving for a deposit | 25% government bonus on savings | Must have opened account before Dec 2019 |
First Homes | Buying a new build | 30-50% discount on market value | First-time buyers with income restrictions |
Right to Buy | Council tenants | £16,000 to £38,000 discount | Tenant of 3+ years with public sector landlord |
Right to acquire | Housing association tenants | Fixed discount (varies by area) | Housing association tenants of 3+ years |
Shared Ownership | Lower income buyers | Buy 25-75% share, pay rent on rest | Household income under £80,000 (£90,000 in London) |
Help to buy ISA: making your savings work harder
How to use Help to Buy ISA for your first home
Though the Help to Buy ISA scheme closed to new applicants in November 2019, existing account holders can still benefit from this valuable savings tool until 2030.
The principle is straightforward - the government adds a 25% bonus to your savings when you buy your first home. You can save up to £200 monthly with a maximum total of £12,000, potentially earning a £3,000 government bonus. This benefit becomes even more powerful when purchasing with another first-time buyer who also holds a Help to Buy ISA, as you can both claim the bonus.
Key Help to Buy ISA requirements:
- Property must be your intended residence (not for rental)
- Must be the only home you own (not part of a portfolio)
- Property price cap of £250,000 (£450,000 in London)
- Contributions must end by November 2029
- All bonuses must be claimed by November 2030
When purchasing your property, your conveyancing solicitor will handle claiming the bonus on your behalf, making the process straightforward for you as the buyer.
First homes scheme: New builds at discounted prices
Eligibility for First Homes scheme in England
The First Homes Scheme offers a compelling opportunity for first-time buyers in England to purchase new-build properties at 30-50% below their market value. This discount remains with the property when you eventually sell, ensuring the home stays affordable for future first-time buyers.
Eligibility focuses on both age and financial circumstances. Individual buyers must be over 18 and able to secure a mortgage for at least half the discounted property price. Income limits apply, with annual earnings capped at £80,000 across most of England, rising to £90,000 for London properties.
Who can use the First Homes scheme:
When buying individually:
- Must be over 18 years old
- Able to secure a mortgage for at least half the discounted price
- Annual income below £80,000 (£90,000 in London)
When buying with others:
- All applicants must be over 18
- All must be first-time buyers
- Combined household income within the same limits
- Joint applications submitted together
Local councils may apply additional criteria, often prioritising local residents, key workers, or those with lower incomes than the national caps. The scheme also offers special consideration for military personnel, veterans, and their families.
Right to buy: a path to ownership for council tenants
The Right to Buy scheme empowers eligible council tenants to purchase their rented homes at significantly discounted prices. The program rewards long-term tenants with larger discounts based on their length of tenancy.
How Right to Buy discounts work:
Following a government review, the maximum Right to Buy discounts were significantly reduced as of 21st November 2024. The new caps now range from £16,000 to £38,000, depending on your location—or 70% of your property's value, whichever is lower.
To qualify, the property must be your only or main home, and you must be a secure tenant with the right to live there for life. You'll need at least three years of public sector rental history, and the property must be self-contained.
This scheme has helped thousands of long-term council tenants become homeowners, often with substantial discounts that would be impossible to find on the open market.
How is the Right to Buy discount calculated?
The size of your Right to Buy discount is determined by:
- How long you've rented from a public sector landlord
- Whether you're buying a house or a flat
- The current value of the property
Right to acquire: for housing association tenants
How to buy a housing association property
Similar to Right to Buy but designed for housing association tenants, the Right to Acquire scheme offers fixed discounts on purchasing your rented home. These discounts typically range between £9,000 and £16,000 depending on location.
Personal eligibility requires at least three years of renting from a public sector landlord, though these years don't need to be consecutive. You cannot use the scheme if you're bankrupt, under a court order to leave your home, or currently a council tenant.
Property eligibility for Right to Acquire:
The property must meet specific criteria to qualify for the scheme:
- Built or purchased after the 31st of March 1997 with social housing grant funding, OR
- Transferred from council ownership after this date
- Registered with the Regulator of Social Housing
- Self-contained and your only/main home
The scheme allows for joint applications with tenancy sharers or with up to three family members who have lived with you for at least a year, making it flexible for different household situations.
Shared ownership staircasing process explained
Shared Ownership offers a more gradual path to full homeownership by allowing you to purchase a portion of a property while paying rent on the remainder. This innovative approach makes getting on the property ladder more accessible with lower initial costs.
Typically, buyers purchase between 25% and 75% of a property, paying rent on the share retained by the housing association. Over time, you can buy additional shares through a process called "staircasing," eventually owning 100% if you choose.
The scheme serves households with incomes below £80,000 (£90,000 in London) and is open to first-time buyers or previous homeowners who cannot afford to buy now. A good credit history and ability to afford the combined costs of mortgage, rent, and associated fees are essential.
You can find out more information on shared ownership with our Shared Ownership guide.
Costs to consider with shared ownership:
When budgeting for shared ownership, remember to account for all associated expenses:
- Mortgage payments on your share
- Rent on the remaining portion
- Service charges and ground rent (for leasehold properties)
- Maintenance costs for your home
- Potential costs of staircasing in the future
While the initial outlay is lower than traditional purchasing, it's important to calculate the combined monthly payments to ensure they fit within your budget.
Financial support beyond government schemes
Many mortgage lenders have developed products specifically designed to address the challenges faced by first-time buyers. These include low-deposit mortgages requiring only 5-10% down payments, guarantor mortgages where parents provide security, and longer-term mortgages that reduce monthly payments.
Support from the Bank of Mum and Dad, where parents gift or lend money for deposits, is also a significant and growing factor in helping buyers onto the property ladder.
Many of these financial products can be used alongside government schemes to further improve affordability.
The landscape of first-time buyer support continues to evolve, with both government and private sector initiatives responding to the changing housing market. Staying informed about these options ensures you can take advantage of all available assistance.
How Homeward Legal supports first-time buyers
Navigating the legal complexities of these schemes requires specialised knowledge. Homeward Legal's conveyancing solicitors understand the unique requirements of each government program and can guide you through the process with expert advice.
Our first-time buyer services include:
- Handling all paperwork and applications for government bonuses
- Ensuring all scheme-specific conditions are met
- Providing clear cost breakdowns with no hidden fees
- Offering a "no completion, no fee" guarantee on all transactions
- Guiding you through each stage of the conveyancing process
We believe that getting on the property ladder should be an exciting milestone, not an overwhelming challenge. Our team works to simplify the legal aspects of your purchase, allowing you to focus on the excitement of becoming a homeowner.
Finding Your Path to Homeownership
Choosing the right scheme depends on your current housing situation, financial circumstances, and long-term goals. Begin by assessing your eligibility for each program and calculating what you can realistically afford with each option.
Speaking with a mortgage advisor about financing options can provide clarity on the borrowing side of the equation. Once you've identified the most suitable path, Homeward Legal can provide the expert legal support needed to navigate the process successfully.
Whether you're saving for a deposit, looking to buy a discounted new build, hoping to purchase your rented home, or considering a shared ownership arrangement, there's likely a government scheme that can help you take that crucial first step onto the property ladder.
For personalised advice on the legal aspects of your first home purchase, contact Homeward Legal at or use our online quote generator for an instant conveyancing quote.