Government Schemes That Can Help You Buy Your First Home

Buying your first home is an exciting milestone—but with rising house prices, it can often feel just out of reach. Fortunately, several government schemes in the UK are specifically designed to make homeownership more accessible for first-time buyers.

Whether you’re struggling to save a deposit or need help finding affordable housing, these 2025 schemes could help turn your homeownership dream into a reality.

1. Shared Ownership

The Shared Ownership scheme allows you to buy a portion of a property—usually between 25% and 75%—and pay rent on the remaining share.

Because you’re only purchasing part of the home, the initial deposit and mortgage amount are significantly lower, making this an attractive option for buyers with limited savings. Over time, you have the opportunity to “staircase” your way up by buying additional shares, potentially leading to full ownership.

In 2025, the government continues to support this scheme, particularly for new-build homes and eligible resale properties, helping more first-time buyers get a foot on the ladder.

2. Lifetime ISA (LISA)

If you’re under 40, the Lifetime ISA is one of the best ways to save for your first home. Here’s how it works:

• You can save up to £4,000 per year
• The government adds a 25% bonus—up to £1,000 per year
• You can use the funds to buy your first home after just 12 months

This scheme is especially useful for buyers who are still in the saving phase but want to maximise their contributions with government support. It can be used alongside other schemes and mortgage options, making it a versatile tool for first-time buyers.

3. First Homes Scheme

The First Homes Scheme offers newly built homes to first-time buyers at a discount of up to 30% compared to market value. In some areas, this discount could be even greater, depending on local housing needs.

Eligibility is determined by the local authority, but generally includes:

• Being a first-time buyer
• Earning below a certain income threshold

The discount is locked into the property, meaning it’s passed on to future buyers, ensuring long-term affordability within the community.

This scheme is ideal for those looking to buy a new-build property in their local area at a significantly reduced cost.

4. Stamp Duty Relief for First-Time Buyers

Stamp Duty can be a major expense when purchasing a home, but in 2025, Stamp Duty Relief is still in place for first-time buyers in England, Wales, and Northern Ireland.

You won’t pay Stamp Duty on properties priced up to £300,000, and there’s partial relief on homes priced between £300,001 and £500,000. This can result in savings of thousands of pounds, significantly reducing your upfront costs when completing the purchase.

Making the Most of These Schemes

Each scheme offers a different type of support—whether it’s lowering your deposit requirements, topping up your savings, reducing the purchase price, or eliminating tax.

Before applying, take time to:

• Research eligibility criteria carefully
• Look into how the schemes may work together
• Speak to a mortgage adviser who understands how to align these benefits with your financial position

Remember, there’s no one-size-fits-all solution—so understanding the options available to you is the best first step toward buying your first home.

If you’d like help understanding which government schemes you qualify for—or how to combine them with the right mortgage product—feel free to contact Bennison Brown. We’re here to guide you through the process and help make your first home more affordable and achievable.