Way back in 2013, the Help to Buy scheme was introduced by the UK government to give a much-needed lift to first-time buyers and people priced out of the housing market.
With the boost of a government loan, thousands of struggling home-buyers were able to turn their dreams of home ownership into a reality.
But how much did Help to Buy actually help? Find out all of the answers below.
How did Help to Buy work?
Help to Buy (also known as the Help-to-Buy Equity Loan) is a government-backed scheme that gives first-time buyers extra money to buy their first home.
If you have saved a 5% deposit towards your dream property, the government tops up your deposit with a loan of up to 20%. To help open up home ownership to those who really need it, the scheme was only directed at first-time buyers.
When did Help to Buy end?
The Help to Buy scheme ended on the 31st of March 2023, but the scheme already closed to new applicants on the 31st of October 2022. According to Lucy Frazer, Minister of State for Housing and Planning, “There are currently no plans to further extend or replace Help to Buy, but all options to increase home ownership are kept under review.” So, if you were looking to take advantage of Help to Buy, you’ve just missed the boat.
However, it’s not time to hit panic stations just yet. If you are looking for alternative ways to get a foot up on the housing ladder, Shared Ownership has got you covered.
How successful was Help to Buy?
The Help to Buy scheme had bold intentions, but did it achieve them? According to Stewart Baseley, Executive Chairman of the House Building Federation, the scheme was extremely successful in enabling “thousands of people to realise their dream of owning a home, the vast majority of whom are first time buyers on average incomes”.
But if you need some cold, hard evidence, here are some of the most eye-catching stats from 10 years of Help to Buy:
- 291,903 properties were bought using the scheme.
- 82% of all homes purchased were by first-time buyers.
- £17.4 billion was the total value of the loans given
- £72.9 billion was the total value of the properties bought using Help to Buy
Wondering what kind of homes Help to Buy users bought? In the most part, Help to Buy gave first-time buyers increased access to houses, including terraced and semi-detached properties, while a smaller proportion used the scheme to buy flats.
- 18% used Help to Buy to purchase flats.
- 82% used to scheme to buy houses, from detached to semi-detached and terraced houses.
Crucially, Help to Buy made a big difference to people on lower household incomes. The majority of first-time buyers who used the scheme had household incomes ranging between £20,000 and £50,000.
- 51% of borrowers had household incomes between £20,000 and £50,000.
- 2% of applicants had household incomes below £20,000.
- 5% of applicants had household incomes above £100,000.
Want to find out more? You can find all of the statistics at the GOV.UK site
Life after Help to Buy
As Help to Buy draws to a close, you might wonder - what can first-time buyers turn to now? Fortunately, there are still a few government schemes that are designed to make home-buying more affordable. Here are two of the most popular options right now:
Shared Ownership
If you are looking for something to fill the gap of Help to Buy, Shared Ownership stands out as one of the best affordable home ownership schemes. Shared Ownership allows you to buy a smaller share of your property and pay subsidised rent on the part that you don’t own - saving you the hassle of saving up a hefty deposit.
Usually, you are allowed to buy an initial share of 25% or 75% of the property value, while taking out a mortgage to pay for a smaller share of the purchase price. From here, you then have the option to buy more shares in your home through ‘staircasing’, which reduces the amount of rent you pay. You’ll be able to enjoy the perks of home ownership, without taking on a huge financial burden.
Why should you consider Shared Ownership?
Put simply, Shared Ownership is a fast and affordable route to home ownership. Fast, because you can halve the time needed to save a deposit. Affordable, because you can move into your own home with a much smaller deposit than on the open market.
While you might only have a small share of your home at the beginning, this is only the start of your Shared Ownership journey.
Should you come into a bit of extra money, or get a better-paying job, you can buy extra shares of your property through ‘Staircasing’. Staircasing enables you to purchase more and more of your home on a step-by-step basis, which reduces the amount of rent you pay accordingly.
Renting an apartment often means being at the mercy of your landlord’s interior design choices. So, if you are someone who wants greater control of how your apartment looks, Shared Ownership could be your best bet. You’ll be given a blank space to design your dream home, without having to ask permission from your landlord.
You might think that by paying an affordable price, you’d have to skimp on the quality of your living area. However, you’d be wrong. Shared Ownership gives you access to some of the most lively and beautiful areas of London.
London Living Rent
London Living Rent is a government-backed scheme that enables Londoners to rent a home at a discounted rate comparable to renting privately, with the saving made each month going towards buying a home through Shared Ownership.
The aim of London Living Rent is to support middle-income buyers to get onto the property ladder and purchase their own homes. It’s designed to allow renters to save at their own pace over a period of years, as properties under London Living Rent guarantee tenants an assured shorthold tenancy of a minimum of three years and a maximum of ten.
Why should you consider London Living Rent?
With rent set below the market rate, you keep more back each month - making it easier to put money aside and build your deposit sooner to buy through Shared Ownership.
You can choose a home in lively, well‑connected neighbourhoods without the usual compromise on quality or commute, thanks to the reduced rental costs.
Enjoy the freedom of renting today while you work towards buying in the future, with a clear route to purchase when the time is right (through Shared Ownership if eligible).
Our team is here to help you set goals and stay on track - so saving feels manageable and you’re ready when it’s time to buy.
Frequently asked questions about the end of Help to Buy
It closed to new applicants on 31 October 2022 and fully ended on 31 March 2023.
Shared Ownership is the main alternative now that Help to Buy has ended, offering a more affordable route to home ownership by letting you buy a share of a home and pay rent on the rest.
There’s still plenty of support for first‑time buyers, even after Help to Buy has ended. The most accessible option is Shared Ownership, which lets you buy a share of a home with a much smaller deposit and increase your share over time.
Many buyers also look at London Living Rent, which lets you rent at a reduced rate while saving for a deposit.
