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Government Schemes for New Home Buyers
Many young people in the UK believe that the government provides no help for first-time home buyers, however the reality contradicts this. The UK government has implemented programmes to make buying your first home easier, by offering various support schemes to financially help aspiring homeowners.
The previous widely adopted scheme was the ‘Help to Buy ISA’ which was designed to financially assist first-time home buyers, however this is no longer available to new applications after the 30th of November 2019.
Lifetime ISA
The Lifetime ISA serves a dual purpose as it can be used to save for purchasing a home, similar to the Help to Buy ISA with the 25% government bonus. This scheme allows up to £4,000 to be saved annually (if you are under the age of 40). Additionally, it can be used for retirement savings where the funds can be accessed tax-free after the age of 60. Find out more here.
NSSE Scheme
Through the NSSE scheme (new supply shared equity), you can purchase a new build home without having to cover its entire cost, with support and assistance from the Scottish Government. The biggest share is covered by the home owner (usually between 60-80%) and the government will hold the remaining share, for example, the home owner pays 70% and the government contribute 30%. As the government have a share of your property, this means that should you sell it in the future, the government will receive a portion of the money. Find more about the conditions of befitting from this scheme here.
LIFT Scheme and OMSE Scheme
The LIFT scheme (low cost initiative for first time buyers) and the OMSE scheme (open market shared equity) are among available schemes benefiting homes buyers. The funding has been utilised for the 2023/24 tax year, however further details will be provided as to the future funding for these in April 2024. Look out for more information.
Despite perceptions among young people that the UK government offers no support for first-time home buyers, there are various initiatives that are available. To find out more about these options, speak to a member of our financial services team who will be happy to provide you with detailed information tailored to your specific needs and preferences. Click here to find out more.
