Successive governments have introduced a number of incentives to assist first-time buyers in getting a foothold onto the housing ladder. Here we provide a summary of the schemes that are available at the time of writing and more information can be found on the Buying and Owning a Property Section of the government website.
Current First-Time Buyer Government Schemes include:
Lifetime ISA (Individual Savings Account) – under this scheme anyone aged between 18 and 40 can open a Lifetime ISA to buy a first home or save for later life. Up to £4000 per year can be invested and the government will add a 25% bonus to your savings, up to a maximum of £1000 per year. Your savings fund can then be used to help buy your first home so long as the property costs £450,000 or less, you buy at least 12 months after your first payment into your Lifetime ISA, you buy with a mortgage, and you use a conveyancer or property solicitor to act on your behalf.
Shared Ownership Schemes – are there to help if you cannot afford all of the deposit and mortgage payments on your desired property, including new-build homes. The schemes allow you buy a share of the property (between 10% and 75%) and pay rent to a landlord on the rest. Owners can increase their share over time with additional payments. All shared ownership homes are leasehold properties and are offered by housing associations, local councils and other providers.
First Homes Scheme – this is a new initiative aiming to give discounts on new-build properties to first-time buyers. Under the scheme new homes are being built specifically to be sold at a discount, with first-time buyers able to buy a new-build property at a discount of 30% off the market price. In England this equates to an average saving of £100,000. In areas where prices are particularly high local councils will be able to increase the discount available to up to 50%. Should the first-time buyer sell the property later the home will be independently valued and the same discount applied to the next first-time buyer. Buyers will need to live locally already and must undertake to live in the property themselves. Key workers such as nurses, police, firefighters, teachers and present and past members of the armed forces will be given priority. There will also be price caps on the value of the property as well as household income. The scheme is in its early stages and is being rolled out on a site-by-site basis.
Right to Buy – this plan helps eligible council and housing association tenants to buy their home with a discount of up to £87,200 in England, or £116,200 in London. Tenants must have lived in the property for a minimum of three years to be eligible.
When buying your first home it’s always wise to choose a property solicitor or conveyancer that has experience of these type of schemes. At Bretherton Law we have this experience and we understand that first time buyers often have lots of questions and appreciate strong guidance throughout the process. In another article we provide some Guidance for First Time Buyers which outlines what you should consider when selecting your conveyancing solicitor or licensed conveyancer.
Bretherton Law have been serving the people of Hertfordshire for over 50 years. Our team of experienced Property Lawyers will ensure that whether you are buying or selling, the conveyancing process will run smoothly and professionally. We offer a same day response promise as well as fixed fee quotes. Bretherton Law are accredited under the Lexcel legal practice and the Law Society’s Conveyancing Quality Scheme. Contact us on 01727 869293 or use the contact form on this page.
