Government Schemes for First Time Buyers in 2025

A Complete Guide to Help You Get on the Property Ladder

Buying your first home can be both exciting and overwhelming. With rising house prices and high deposit requirements, many first time buyers feel stuck. Fortunately, several government schemes for first time buyers in 2025 are designed specifically to help you overcome these challenges and make homeownership achievable.

This guide explains the latest first time buyer schemes, their benefits, eligibility, how to apply, and importantly scheme closing dates, so you don’t miss out.

Please note that government schemes and their eligibility criteria can vary depending on the country, with different rules in England, Scotland, Wales, and Northern Ireland.

1. First Homes Scheme

Affordable New-Builds for Local First Time Buyers

The First Homes Scheme enables first time buyers to buy a new-build property with a discount of 30% to 50% off the market price. The discount is locked into the property so future buyers benefit too.

When you sell a First Homes property, you must sell to another eligible first time buyer, and the same discount is retained. You must get a mortgage for at least 50% of the new build property’s value. Estate agents and developers list new build properties that qualify for the scheme.

Benefits:

• Discount of 30–50% on purchase price
• Lower mortgage and deposit needed
• Reserved for local people, key workers and low to middle earners
• Buyers achieve full ownership of the property after purchase

Eligibility:

• First time buyer with household income under £80,000 (£90,000 in London)
• Buying a home under the price cap set by the local authority: £250,000 (£420,000 in London) after the discount
• Must use a mortgage for at least 50% of the purchase
• Homes eligibility criteria include being a first time buyer, meeting local authority requirements, and joint income limits

Availability:

• No set closing date – scheme is ongoing, subject to local council and developer availability.
• Estate agents and developers list new build properties that qualify for the scheme.

For further information, visit the official government website or contact your local authority for detailed guidance on the First Homes scheme.

2. Shared Ownership Scheme

Buy a Share and Rent the Rest

Shared Ownership lets you buy a portion of a home (as low as 10%) and pay rent on the remainder. The landlord, usually a housing association, owns the remaining share of the property and charges rent on that portion. Shared Ownership is a good alternative for those who cannot afford to buy on the open market. You can buy more of the home later (known as “staircasing”).

Benefits:

• Start with a smaller deposit
• More affordable than buying outright
• Ideal for low to moderate income households
• You can increase your property’s ownership share over time through staircasing

Eligibility:

• First time buyers or those who no longer own a home
• Income below £80,000 (£90,000 in London)

Availability:

• Ongoing with no closing date, part of the government’s Affordable Homes Programme through 2026.

If Shared Ownership is not suitable, there are other options available for first-time buyers

3. Mortgage Guarantee Scheme

Buy with Just 5% Deposit

This scheme encourages lenders to offer 95% loan-to-value mortgages by backing them with a government guarantee.

Benefits:

• Access 95% mortgages from major lenders
• Competitive rates despite low deposit
• Suitable for new and existing properties

Eligibility:

• First time buyers or home movers
• Applies to houses up to £600,000
• Repayment mortgage only

Closing Date:

• Extended to June 30, 2025 –
  
  

  subject to lender participation beyond that.

4. Lifetime ISA (LISA)

Get a 25% Government Bonus on Your Savings

The Lifetime ISA is a savings account that helps first-time buyers save for a deposit. You can contribute up to £4,000 each tax year and get a 25% bonus from the government based on your contributions within that tax year.

Benefits:

• Government adds up to £1,000/year
• Tax-free interest and bonus
• Use for first home up to £450,000

Eligibility:

• Age 18–39

• Must hold the account for 12 months before using it to buy a home

Availability:

• Ongoing – no announced end date, though subject to future government policy changes.

5. Help to Build Scheme

Support for Building Your Own Home

Help to Build supports first-time buyers who want to build their own home with just a 5% deposit. You receive an equity loan of up to 20% (40% in London) to reduce mortgage borrowing.

Benefits:

• Only 5% deposit required
• Loan reduces monthly repayments
• Allows you to custom-build your home

Eligibility:

• Must intend to live in the home
• Must secure a self-build mortgage
• Property must be your main residence

Availability:

• Applications open and ongoing through Homes England – no published closing date.

6. Right to Buy (England)

Buy Your Council Home at a Discount

Right to Buy allows eligible council tenants to buy their rented home at a substantial discount, up to £96,000 outside London, and £127,900 within Greater London.

Benefits:

• Potentially no deposit required (some lenders accept discount as deposit)

• Significant equity from day one

Eligibility:

• Secure council tenant for 3+ years
• Main home

Availability:

• Ongoing with no set end date – future reforms expected, so act early if eligible.

Understanding Deposit Requirements

Saving for a deposit is often the biggest hurdle for first time buyers hoping to get on the property ladder. The amount you need for a deposit typically ranges from 5% to 20% of the property’s market value, depending on the lender and the type of property you want to buy.

For example, a home valued at £250,000 would require a deposit of at least £12,500 if you’re putting down 5%.

First time buyer schemes can make this challenge more manageable. The mortgage guarantee scheme, for instance, enables buyers to secure a mortgage with just a 5% deposit, thanks to a government-backed guarantee that gives lenders more confidence. Similarly, the Lifetime ISA helps first time buyers boost their savings with a 25% government bonus, which can be put towards your deposit.

Understanding the deposit requirements for your chosen property and exploring all available first time buyer schemes is essential. By taking advantage of these government-backed options, first time buyers can reduce the upfront costs and take a confident step towards home ownership.

Armed Forces Support for First Time Buyers

If you’re serving in the armed forces and looking to buy your first home, the government’s Armed Forces Help to Buy scheme is designed to give you a head start. This scheme offers an interest-free loan of up to 50% of your annual salary (up to a maximum of £25,000), which can be used towards your deposit, solicitor fees, or other costs involved in purchasing a property.

To be eligible, you’ll need at least six months of service and must meet specific eligibility criteria set by the scheme. The aim is to help armed forces personnel overcome the financial barriers to getting on the property ladder, making it easier to secure your first home.

In addition to the Armed Forces Help to Buy scheme, key workers including those in the armed forces may also benefit from other first time buyer schemes. Such as the First Homes scheme, which offers a discounted purchase price on new build properties. These combined benefits can make a significant difference, helping you move from renting to owning your first home.

Supporting First Time Buyer Government Schemes

The government provides a range of schemes to support first time buyers, making it easier to achieve home ownership. Options like the First Homes scheme, Shared Ownership, and the Lifetime ISA are designed to reduce the financial barriers that many buyers face.

• • The First Homes scheme offers a discounted purchase price of at least 30% on new build properties, helping buyers secure a home at below market value.

  • Shared Ownership allows you to buy a share of a property and pay rent on the remaining portion, making it possible to get on the property ladder with a smaller deposit and lower monthly costs.

  • The Lifetime ISA gives first time buyers a government bonus on their savings, which can be used towards a deposit or purchase costs.

• Local authorities and housing associations also play a key role by setting local eligibility criteria and prioritising key workers or those with a local connection. By understanding the eligibility criteria for each scheme and working with your local council or housing association, you can find the best route to home ownership.

  Exploring these government schemes and their benefits can help first time buyers make informed decisions and take their first step towards owning a property.

Supporting First-Time Buyer Government Schemes

Summary of Closing Dates

How to Get Started as a First Time Buyer

Navigating these schemes can be confusing, especially if you’re new to mortgages. Working with a qualified mortgage broker ensures you understand:

• Which schemes you’re eligible for

• How to structure your deposit and mortgage

• How to avoid delays and mistakes in your application

• Which lenders support each government scheme

• How a family member can act as a guarantor or provide financial support if you have a small deposit or limited credit history.

Final Thoughts

As a first-time buyer in 2025, you have more support than ever before, but each scheme comes with its own criteria and closing dates. With careful planning and expert advice, you can make your dream of owning a home a reality.

Get help from an experienced mortgage broker.

You can speak to one of our specialist mortgage brokers who would be able to guide you through the process. They will advise if there is a lender available and the maximum loan amount based on your circumstances. We are a whole of market mortgage brokerage with access to all lenders. Call us on 01332 470400 or complete the form with your details for us to give you a call back.

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