For those entering the housing market in 2025, understanding the various government buyer schemes for first-time buyers is essential; notably, the Help to Buy: Equity Loan scheme closed to new applications on 31 October 2022.¹

However, other initiatives, such as Shared Ownership and the Lifetime ISA, continue to support first-time buyers in achieving their homeownership goals.

At EveryInvestor, our team has meticulously researched and fact-checked this guide to provide you with up-to-date information on available government schemes.

Read on to discover how these programs can assist you in achieving your homeownership aspirations...

What Government Support Is Available for First-Time Buyers? An Overview of Support

The UK government offers various schemes to help first-time buyers enter the property market, and these initiatives aim to reduce upfront costs, provide financial incentives, and improve mortgage accessibility.

Government schemes can help buyers secure a home with a lower deposit or benefit from discounted property prices, making homeownership more achievable.

Government initiatives are designed to support individuals in purchasing their initial residences.

Let's take a look:

How Do Government Schemes Benefit First-Time Buyers?

Government schemes benefit first-time buyers by reducing financial barriers to homeownership and offering support through equity loans, shared ownership options, and deposit assistance, making it easier to secure a property.

By lowering upfront costs and improving mortgage affordability, these schemes help individuals who may struggle to save a large deposit or access competitive mortgage rates.

Taking advantage of these programmes can make the path to owning a home more achievable.

What Government Help is Available for First-Time Buyers?

The government offers various forms of help and support to first-time buyers beyond equity release and jointly-owned properties.

Reduced stamp duty rates can lower upfront costs, making homeownership more accessible; additionally, some regions offer local authority grants or low-interest loans to help with purchasing a home.

By thoroughly exploring available schemes and checking eligibility, first-time buyers can access a range of valuable resources designed to make homeownership more achievable.

What Are the 3 Government Schemes for First-Time Buyers?

The government frequently introduces new initiatives aimed at making homeownership more accessible to first-time buyers; one of the latest schemes includes the First Homes Scheme, which offers discounted new-build homes to first-time buyers.

The government has also been working on expanding the Help to Buy equity loan scheme, providing further opportunities for first-time buyers to get onto the property ladder.

Take a look at your options:

#1. Help to Buy Equity Loan

The Help to Buy Equity Loan is a popular government scheme that enables first-time buyers to borrow up to 20% of the property value (40% in London) interest-free for the first 5 years; it is available for new-build homes and can significantly reduce the amount of deposit needed to secure a mortgage.²

However, it's important to note that the Help to Buy Equity Loan scheme closed to new applicants on 31 October 2022, so while the scheme was available to assist first-time buyers in the past, it is no longer accessible for new applications.

By lowering the deposit requirement, the scheme helps to make homeownership more accessible for those struggling to save a large down payment, and after the initial 5-year interest-free period, buyers are required to pay interest on the loan.

#2. Shared Ownership Scheme

The Shared Ownership Scheme allows first-time buyers to purchase a share of a property, typically ranging from 25% to 75%, and pay rent on the remaining portion; this is ideal for those with limited savings for a deposit or for buyers who cannot access larger mortgages.³

This initiative makes it easier for individuals to enter the property market, especially if they cannot afford the full purchase price of a home.

The advantage of shared ownership is that it reduces the upfront cost of buying a home, provide a more affordable way to step onto the property ladder and, over time, buyers have the option to buy additional shares in the property, known as "staircasing," which increases their ownership stake.⁴

#3. Lifetime ISA

The Lifetime ISA (LISA) is a government-backed savings account designed to help first-time buyers save for their home deposit, allowing individuals to contribute up to £4,000 each year with the government adding a 25% bonus on contributions, up to a maximum of £1,000 annually.⁵

The money saved in a LISA can only be used for purchasing a first home or for retirement once you turn 60,and if used for buying a home, the funds must be used within 12 months of the purchase.

It’s an attractive option for first-time buyers who want to maximise their savings and receive a substantial government contribution towards their property purchase.

New Government Schemes for First-Time Buyers: What’s Available in 2025?

In 2025, new government schemes are being introduced to support first-time buyers in their journey towards homeownership, which include targeted regional programmes aimed at helping buyers in areas with high property prices or new government-backed loan options.

As the housing market continues to evolve, staying informed about these new initiatives is crucial; keep up with government announcements to take advantage of new opportunities to make their homeownership dreams a reality.

What Is the First-Time Buyer Saving Scheme Application Process?

The first-time buyer application process for government-backed savings schemes involves several key steps such as providing prood of ID and income; but before applying for a mortgage, verify that you meet the eligibility criteria for the scheme you are interested in.

Once you’ve confirmed your eligibility, gather the necessary documents to support your application and begin the process of saving for your future home.

Here are the factors to consider:

What Are the Steps to Apply for Home Buying Schemes?

The steps for applying for government-backed home buying schemes generally involves a few standard steps; to get started, you’ll need to complete the application form for the specific scheme you’re interested in.

Along with the form, you’ll typically need to provide proof of identity, income, and any additional documents that may be required for eligibility verification.

What Are the Government First-Time Buyer Eligibility Criteria?

Government first-time buyer factors that typically influence eligibility include your income, age, and whether you have previously owned a home.

Different schemes have varying requirements, so it’s crucial to review each one carefully to determine if you meet the necessary conditions.

By ensuring you’re eligible, you can maximise your chances of securing the right support to purchase your first home.

What Documents Are Required for Government First-Time Buyer Schemes?

To apply for government first-time buyer schemes, you’ll need to provide essential documents to verify your eligibility; typically, you’ll need proof of income, identification documents (such as a passport or driving licence), bank statements, and details about the property you wish to purchase.

Having these documents ready will help you complete the application process more efficiently and avoid delays, ensuring a smoother journey towards homeownership.

What Financial Aspects Should You Consider for First-Time Buyer Schemes?

The financial aspects of government schemes includes familiarising yourself with mortgage guarantees, deposit requirements, equity loan options, and any associated costs.

It’s also important to budget effectively, factoring in ongoing costs such as mortgage repayments, insurance, and maintenance; professional financial advice can help you navigate these considerations.

Take a look at these aspects:

How Do Government Mortgage Schemes Help First-Time Buyers Secure a Home?

Government mortgage schemes are designed to support first-time buyers with smaller deposits, and with a guarantee from the government covering a portion of the mortgage, lenders are more willing to offer loans to those with just a 5% deposit.

These initiatives reduce the risk for lenders and provide increased availability for buyers who might otherwise face challenges in securing a mortgage.

If you're a first-time buyer, it's worth exploring these schemes with your lender or financial adviser to understand eligibility and how they can support your home-buying journey.

What is the Mortgage Guarantee Scheme and How Does It Help First-Time Buyers?

The Mortgage Guarantee Scheme is a government initiative aimed at helping first-time buyers secure a mortgage with a smaller deposit.

By offering a government-backed guarantee to lenders, the scheme reduces the lender's risk, making it easier for buyers to access mortgage options with just a 5% deposit.

This can lead to more favourable mortgage terms and help first-time buyers enter the property market, even if they don’t have the larger deposits typically required.

What Are the Deposit Requirements and Equity Loan Options for First-Time Buyers?

For first-time buyers, understanding deposit requirements and equity loan options typically allow you to purchase a home with as little as a 5% deposit.

Additionally, some initiatives, like the Help to Buy Equity Loan, offer an interest-free loan on a portion of the property’s value, helping to reduce the amount you need to borrow.

Be sure to check eligibility criteria and plan your finances accordingly.

What Are the Costing and Budgeting Guidelines for First-Time Buyers?

Costing and budgeting are essential when planning to buy your first home, so it is important to factor in not only the deposit but also additional costs such as legal fees, stamp duty, surveys, and moving expenses.

Ongoing costs, including mortgage payments, property taxes, utilities, and maintenance, should also be considered to ensure you can afford homeownership in the long term.

Creating a detailed budget and seeking professional advice can help you navigate these financial aspects and prevent unexpected financial strain down the road.

What Does the Future Hold for First-Time Home Buyers?

The future of first-time home buying looks promising, with ongoing efforts to make homeownership more attainable; new government initiatives are expected to provide more tailored support, addressing specific regional needs and offering additional financial help.

As the property market continues to evolve, more innovative schemes and funding options are likely to emerge, creating fresh opportunities for prospective buyers.

Here's what the future holds:

What Are the Emerging Home Buying Schemes for First-Time Buyers?

Emerging home buying schemes are being developed to meet the evolving needs of first-time buyers, particularly addressing affordability and eligibility challenges.

Some of the new initiatives include:

• First Homes Scheme: This scheme offers discounted new build homes for first-time buyers, with discounts of up to 30% on the market price, depending on local area prices.
• Mortgage Guarantee Scheme: Aimed at helping buyers with small deposits, this scheme offers a government-backed guarantee to lenders, enabling buyers to access mortgages with as little as a 5% deposit.
• New Buy Scheme: This initiative provides support for buyers looking to purchase new-build homes with a deposit as low as 5%, making it easier for them to enter the property market.

What Are the Innovations in Assistance for Home Buyers?

Innovations in assistance are revolutionising how first-time buyers navigate the property purchasing process, and new tools and financing options aim to make homeownership even more accessible.

These innovations are reshaping how individuals approach homeownership, offering more accessible and streamlined pathways for first-time buyers.

Some examples include:

• Digital Property Search Tools: These platforms simplify the home-buying process, allowing buyers to efficiently search for properties that fit their preferences and budgets.
• Alternative Financing Models: Rent-to-own schemes, shared equity options, and other creative financing solutions are helping buyers who may struggle with traditional methods.
• AI-Driven Mortgage Guidance: Artificial intelligence is being leveraged to provide personalised mortgage advice, helping buyers make informed decisions based on their specific financial situation.

First-Time Buyer Incentives in 2025: What’s on Offer?

In 2025, various incentives are available to support first-time buyers entering the property market, including reduced stamp duty rates, which lower upfront costs, and government-backed schemes that assist with deposits and mortgage affordability.

Some regions also provide additional benefits, such as grants or tax relief, making it essential to explore all available options.

By understanding and leveraging these incentives, first-time buyers can significantly reduce the financial burden of purchasing a home.

Common Questions

In Conclusion

For first-time buyers, stepping onto the property ladder can feel challenging, but a range of government-backed schemes can make homeownership more achievable.

From equity loans and shared ownership to savings incentives, these initiatives offer financial support tailored to different circumstances. Understanding the options available and how they fit your needs can help you make informed decisions and take a confident step toward owning your first home.

With the right plan in place, homeownership could be closer than you think.