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 will be coming to an end on Friday 31st March, 2023. However, the scheme closed to new applicants on Monday 31st October, 2022.
If you’re an eligible buyer who submitted your application before the October deadline, your homebuilder must finish building your home by Saturday 31st December. You must then legally complete and get the keys to your new property by 6pm on Friday 31st March, 2023.
What are the alternatives to Help to Buy?
Help to Buy has helped thousands of buyers take their first step onto the property ladder over the years but just because the equity loan scheme has closed to new applicants, 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 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.
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.
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 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.
To find out more about other home-buying and rental options, visit our article index, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!