What Support can First Time Buyers expect after Help to Buy?

Since the Help to Buy scheme was launched in 2013, it has helped over 280,000 first-time buyers onto the property ladder and has been a valuable stepping stone into homeownership.

With the scheme coming to an end on 31st March 2023, what assistance will there be for first-time buyers?

First Homes Scheme

The government launched the First Homes Scheme in June 2021 with the aim of helping first-time buyers onto the property ladder within their local communities.

Key facts:

  • Offers newly built homes to first-time buyers at a discounted price of at least 30% versus the open market value
  • Discount remains with the property as ownership changes hands
  • Maximum combined income of £80,000 or £90,000 in London
  • Designed to assist first-time buyers in purchasing properties within their local communities, especially key workers
  • A minimum mortgage of at least 50% of the discounted purchase price needs to be arranged to purchase the property
  • After the discount, the purchase price should be no higher than £250,000 or £420,000 in London
  • Builder to qualify applicants to ensure that they meet the eligibility criteria, following this they will then make the application to the Local Authority

Benefits:

  • First-time buyers will have full ownership of the property
  • All new homes built in England will be required by law to have electric vehicle (EV) charging points installed from 2022
  • Significant discounts available

Drawbacks:

  • You can potentially pay a higher premium for new build properties
  • Limited availability of homes

Remember, first-time buyers who wish to take advantage of the Help to Buy Scheme must complete it by 31st March 2023. Realistically clients need to have found property by the beginning of November as conveyancing timescales need to be considered, which is circa 20 weeks, potentially slightly longer for leasehold properties.

Alternative schemes such as shared ownership are also available to support first-time buyers. Whatever scheme your clients opt for, eConveyancer can assist in meeting their conveyancing needs.

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