Government Support Schemes for Buyers in 2025

With house prices and deposit hurdles still towering for first-time buyers and home movers, the government has introduced several support schemes to help bridge the gap. Here’s a breakdown of the key options available in England in 2025, what they offer, and who they suit best.

1. Freedom to Buy mortgage guarantee

Introduced permanently in July 2025, this scheme supports lenders in offering 95% loan-to-value mortgages, requiring just a 5% deposit. The government acts as guarantor, encouraging lenders to maintain low-deposit products even in tighter markets.

Who it helps: First-time buyers and home movers with limited savings.

Trade-off: Interest rates may be higher; affordability must be carefully assessed.

2. Shared ownership

Shared Ownership allows you to buy a portion of a home (25%–75%) while paying rent on the remainder. Over time, you can increase your ownership through “staircasing” until you own 100% if desired.

Who it’s for:

• Low- to moderate-income households
• Household income: £80,000 or less (outside London), £90,000 or less (within London)
• First-time buyers or those unable to afford a full-market mortgage
• Previous homeowners unable to buy again (e.g., after a divorce)
• Existing shared owners looking to move

Pros:

• Lower deposit required (5–10% of the share purchased)
• Gradual path to full ownership via staircasing
• More affordable access to homeownership than buying outright

Be aware:

• Rent payable on the share you don’t own until 100% ownership
• Service charges and ground rent apply
• Properties are leasehold with associated conditions
• You remain legally a tenant until full ownership
• Stamp duty may apply when staircasing to 80%+ ownership

3. Help to Buy: equity loan (closed to new applicants)

Closed to new applicants in October 2022, this scheme supported first-time buyers purchasing new-builds. Buyers received a government loan up to 20% of the property price (40% in London), requiring only a 5% deposit and a 75% mortgage. Interest-free for five years, repayments are then based on current market value.

Key points:

• Closed to new applications; purchases completed by March 2023
• Available only for new-build homes from registered developers
• First-time buyers only under the final phase (2021–2023)
• Loan up to 20% in England, 40% in London
• Interest-free for five years, then interest starts at 1.75% (rising annually)
• Repayments based on market value, not original loan—risk if property values fall
• Regional price caps applied (e.g., £600,000 in London)

4. Lifetime ISA (LISA)

A long-term savings vehicle for first-time buyers. Save up to £4,000 yearly and receive a 25% government bonus, up to £1,000 annually. While not a direct purchase scheme, it can help boost your deposit over time.

5. Private equity‑sharing schemes

These allow you to partner with a private investor contributing a portion of the purchase (often up to 25%). You pay rent on their share and can buy them out later based on market value.

Flexibility: Works with resale homes, not just new builds.

Drawback: Rent and eventual buy-out costs must be factored into long-term planning.

Which scheme works best for you?

• Deposit under 5–10%? Freedom to Buy or Shared Ownership can ease initial costs.
• Flexibility? Private equity sharing offers access to resale homes.
• Maximise savings? A Lifetime ISA boosts your deposit.
• Long-term stability? Shared Ownership or proven mortgage guarantee offers structure—just weigh ongoing costs.

Navigating the support landscape

Each scheme has eligibility criteria, financial implications, and potential drawbacks. Consider:

• Interest rates, rent, service charges, and buy-out costs
• Income caps, property caps, and ownership eligibility
• Long-term affordability, not just initial access

Want help assessing your best route to ownership?

Let’s explore schemes that fit you and build your roadmap forward.