After giving thousands of cash-strapped Londoners a route to the property ladder, the Help to Buy scheme has officially closed its shutters. However, as one door closes, another one opens. The Help to Buy scheme may have ended, but you can still get help to buy your first home.

Find out what the end of Help to Buy means for you below:

What is the Help to Buy scheme?

Help to Buy is a government-backed home ownership scheme that helps first-time buyers buy a property with as little as a 5% deposit. The government then supplements your deposit with a loan that is 20% of the purchase price (40% in London), and interest-free for 5 years. Help to Buy made a big difference to people priced out of the housing market, helping up to 291,903 first time buyers.

When did Help to Buy end?

The Help to Buy scheme ended on the 31st of March 2023, but the scheme already closed to new applicants on the 31st of October 2022. According to Lucy Frazer, Minister of State for Housing and Planning, “There are currently no plans to further extend or replace Help to Buy, but all options to increase home ownership are kept under review.” So, if you were looking to take advantage of Help to Buy, you’ve just missed the boat.

At a time where market house prices are sky-high, the end of affordable home ownership schemes like Help to Buy might have you fearing the worst. House prices may be set to fall in 2023, but properties in London still cost more than anywhere else in the country. However, it’s not time to hit panic stations just yet. If you are looking for alternative ways to get a foot up on the housing ladder, Shared Ownership has got you covered.

 

Stunning Shared Ownership Bedroom at Southmere, Bexley

Why should you turn to Shared Ownership?

As the light begins to dim on the Help to Buy scheme, the shine turns to Shared Ownership as a great way to help first time buyers get their foot on the property ladder. Enabling you to buy a smaller share of your home, and pay rent on the remainder, Shared Ownership is a popular option for anyone struggling to buy their first home. Find out all of the benefits of Shared Ownership below:

1. It’s quick and affordable

Put simply, Shared Ownership is a fast and affordable route to home ownership. Fast, because you can halve the time needed to save a deposit. Affordable, because you can move into your own home with a much smaller deposit than on the open market. So, if you are eager to own your own home, but don’t want to spend ages saving for a deposit, Shared Ownership should be your top priority.

2. It’s a starting point for future home ownership

While you might only have a small share of your home at the beginning, this is only the start of your Shared Ownership journey. Should you come into a bit of extra money, or get a better-paying job, you can buy extra shares of your property through ‘staircasing’. Staircasing enables you to purchase more and more of your home on a step-by-step basis, which reduces the amount of rent you pay accordingly.

3. More personalisation

Renting an apartment often means being at the mercy of your landlord’s interior design choices. So, if you are someone who wants greater control of how your apartment looks, Shared Ownership could be your best bet. You’ll be given a blank space to design your dream home, without having to ask permission from your landlord.

4. Great areas to live

You might think that by paying an affordable price, you’d have to skimp on the quality of your living area. However, you’d be wrong. Shared Ownership gives you access to some of the most lively and beautiful areas of London. Whether you fancy a quiet area surrounded by green spaces, or a town buzzing with activity and convenient transport links, you’ll find an area you love in no time.