Help for First-Time Buyers in 2025

First Homes Scheme

The First Homes Scheme offers first-time buyers in England a 30% to 50% discount on selected new-build homes. Designed to make homeownership more affordable, the discount applies to both the initial sale and future resales of the property, helping maintain affordability for generations to come.

• Eligibility: First-time buyers earning less than £80,000 (£90,000 in London)
• Price caps: Homes must be sold for under £250,000 (£420,000 in London) after the discount
• Local priority: Councils may prioritise local residents and key workers
• How to apply: Apply directly through participating developers or estate agents

Mortgage Guarantee Scheme (Extended to June 2025)

If you're struggling to raise a large deposit, the Mortgage Guarantee Scheme could be the solution. Backed by the government, this scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages.

• Deposit: Just 5% needed
• Property limit: Applies to properties up to £600,000
• Eligibility: Available for both new and existing properties
• How to apply: No separate application - ask your lender about 95% mortgage options

Lifetime ISA (LISA)

The Lifetime ISA helps you save for your first home with a generous 25% government bonus. Open to those aged 18–39, this tax-free savings account can significantly boost your deposit.

• Contribute up to: £4,000 per year
• Bonus: Up to £1,000 annually from the government
• Use for: Buying a home up to £450,000 or retirement
• Withdrawals: Penalty for non-home or early withdrawals

Shared Ownership

Can't afford to buy 100% of a home? Shared ownership lets you purchase a portion (25%–75%) and pay rent on the rest. You can increase your share over time through a process known as "staircasing."

• Ideal for: First-time buyers on lower incomes
• Deposits and mortgages: Based on the share you purchase
• Rent: Paid on the remaining share to a housing association
• Future purchases: Buy more shares as your finances improve

Help to Buy – Wales

Although the Help to Buy: Equity Loan scheme ended in England, it remains available in Wales for new-build properties.

• Loan: Up to 20% interest-free for five years
• Deposit required: Minimum 5%
• Property limit: Homes up to £300,000

Bank of Mum and Dad

Family support remains a significant source of help. In 2024, the average parental contribution to first-time buyers was £55,572. If you're fortunate enough to receive help from family, it can make a huge difference, particularly for deposits and upfront costs.

Stamp Duty Relief for First-Time Buyers

In April 2025, first-time buyers' stamp duty exemption threshold returned to £300,000. For properties up to £500,000, you'll still receive a reduced rate.

• No stamp duty: On homes up to £300,000
• Discounted rate: On homes between £300,001 and £500,000
• Applies to: England and Northern Ireland

Housing Market Insights in 2025

The start of 2025 has seen a slight dip in house prices, presenting a potentially ideal moment for first-time buyers. Mortgage rates have also become more competitive, with some lenders offering fixed rates below 4% as confidence grows.

Start Your Home Buying Journey with Farrell Heyworth

Whether you're looking to explore affordable homes, need advice on applying for a mortgage, or want help navigating government schemes, Farrell Heyworth is here to guide you. As experienced estate agents covering the North West, we're proud to support first-time buyers with expert local knowledge and personalised advice.