Help to Buy alternatives
What are my options now Help to Buy has ended?
What is Help to Buy?
Help to Buy was a government-backed scheme which aimed to help first time buyers onto the property market.
Help to Buy provided eligible buyers with an equity loan (also known as shared equity) of up to 20% of the value of a new build home. The government provided the 20% loan so the buyer only needed to raise a 5% deposit, with a 75% mortgage making up the rest.
When did Help to Buy end?
The Help to Buy equity loan scheme closed to new applications on Monday 31st October 2022, with the scheme officially ending on Friday 31st March 2023. Homes England have confirmed there will be no exceptions or extensions, and there are currently no plans to replace the equity loan with another scheme.
What are the alternatives to Help to Buy?
Since its inception in 2013, Help to Buy has assisted over 350,000 buyers taking their first step onto the property ladder but just because the equity loan scheme has now ended, doesn’t mean there aren’t plenty of other home-buying alternatives available.
Check out some of the other housing options available to budding buyers, aimed at meeting the demand for a more affordable route to homeownership.
Shared Ownership
Shared Ownership is a part-buy part-rent scheme allows eligible purchasers to buy a share of a new build or resale home, paying a mortgage on the owned portion and a below-market-value rent on the remainder.
Interested in Shared Ownership as an alternative to Help to Buy? Find out more on Share to Buy.
First Homes
The First Homes discount initiative helps local people and keyworkers buy a home in areas of high demand, with developers offering homes to first time buyers with a discount of 30% to 50% of the market value of the property.
Interested in First Homes as an alternative to Help to Buy? Find out more on Share to Buy.
Deposit Unlock
Available from participating developers, Deposit Unlock is a 5% deposit scheme on new build properties where the home builder insures the mortgage to help the buyer get a better Loan-to-Value mortgage from lenders.
Interested in Deposit Unlock as an alternative to Help to Buy? Find out more on Share to Buy.
Discount Market Sale
Discount Market Sale is a low-cost homeownership product where a new build property is purchased at a discounted price. This discount is usually around 20% to help low and middle income earners who live in the borough.
Interested in Discount Market Sale as an alternative to Help to Buy? Find out more on Share to Buy.
Discount Full Ownership
Available in London, this scheme allows buyers to purchase 100% of a property at a discounted rate of at least 20% compared to local market prices.
Interested in Discount Full Ownership as an alternative to Help to Buy? Find out more on Share to Buy.
Intermediate Rent
Intermediate Rent is a scheme aimed at helping buyers who plan to save a deposit and purchase a property within five years, giving them the option to rent a new or refurbished home at a subsidised rate.
Interested in Intermediate Rent as an alternative to Help to Buy? Find out more on Share to Buy.
London Living Rent
Available to renters in the capital, homes available through London Living Rent are offered on tenancies of minimum three years with below-market value rent. The tenant can go on to make an offer to purchase the property on a Shared Ownership basis during the tenancy.
Interested in London Living Rent as an alternative to Help to Buy? Find out more on Share to Buy.
Rent to Buy
With Rent to Buy, working households are able to rent a new build home on an Intermediate Rent basis, with the property being let a subsidised rate of 20% and a fixed rate of inflation. The tenant can go on to make an offer to purchase the property on a Shared Ownership basis during the tenancy.
Interested in Rent to Buy as an alternative to Help to Buy? Find out more on Share to Buy.