Help to Buy Scheme April 2021-March 2023

Published: 12/03/2021

The Help to Buy scheme started in 2013 and has been aiding buyers across the country to get onto the property ladder. It is an equity loan scheme where the government will lend up to 40% of the full purchase price of a newly built home in London, or up to 20% outside of London.

What is changing about the Help to Buy scheme and how will this affect you?

Buyer Status:

On the previous scheme (2013-2021), a homeowner could apply for the Help to Buy funding as long as their property was sold on completion or prior to completion of the Help to Buy property.

To be eligible for the Help to Buy scheme going forward, you must be a first-time buyer. The Government’s definition of a first-time buyer is anyone that has never owned a property in the UK or anywhere abroad.

Please note, married couples’ assets are treated as jointly owned. If you want to use the Help to Buy scheme but your spouse is already a homeowner, you will not be eligible.

Price Caps:

There will be regional purchase price caps under the new Help to Buy scheme (please see the table).
The maximum purchase price in London remains the same at £600,000

RegionPrice Cap
South East£437,600
East of England£407,400
South West£349,000
East Midlands£261,900
West Midlands£255,600
Yorkshire and the Humber£228,100
North West£224,400
North East£186,100

Ground Rent:

Leasehold properties sold under the new Help to Buy scheme will not be subject to a ground rent going forward.