There was some news coverage earlier this week about the difficulties many people now face in getting on to the housing ladder, so I thought it would be helpful to post something about the government schemes that are here to help.
Over the past six years, these schemes have helped more than 300,000 households own their own home, but we want to go further. From help to save for a deposit to buying a share of a property, here’s a quick summary of five of the most popular schemes on offer:
Help to Buy: ISA
If you’re saving towards your first home, a Help to Buy: ISA will boost your savings by 25% when you save up to £200 a month. For every £200 you save, the government will top it up with £50. Over half a million Help to Buy: ISAs have been opened since they launched in December 2015.
Help to Buy: Equity Loan
If you want to own a new-build home in England, you could borrow 20% (up to 40% in London) of the purchase price from the government. You’d only need a 5% deposit and your mortgage would make up the rest.
Help to Buy: Mortgage Guarantee
If you’re struggling to afford a higher deposit, you could buy a new-build or an older home anywhere in the UK with just a 5% deposit.
Help to Buy: Shared Ownership
If you can’t quite afford to buy 100% of a home, you could buy a share of your home instead and pay rent on the rest. Deposits are as little as £1,500.
If you’re a first-time buyer the upcoming Starter Homes scheme could help you buy a new-build home with a 20% discount. You can register your interest now.
Right to Buy
If you're a council tenant, we've increased Right to Buy discounts and if you're a housing association tenant we've reached agreement with housing associations to extend the Right to Buy to them - it will be introduced shortly.
For more information on these schemes, visit www.ownyourhome.gov.uk.
As the new Housing Minister, I want to ensure as many people as possible have the opportunity to realise their dream of owning their own home - not just for their sakes but also because doing so will release council and housing association homes and homes in the private rented sector for those in need. I’d be grateful for any comments and your feedback below.