The Government is supporting home buyers with small deposits to achieve their home ownership aspirations through a number of measures:
- Operating the Help to Buy Equity Loan scheme, which offers a government equity loan of up to 20 per cent (up to 40 per cent in London) of the price of a new build home up to the value of £600,000;
- The Government’s Help to Buy ISA helps to boost the savings of prospective first-time buyers. It offers a 25 per cent savings bonus, up to a maximum of £3,000, towards the purchase of a first home;
- In April 2017, the Government will also introduce the Lifetime ISA. This will support younger adults to save flexibly for the long term, giving them a 25 per cent bonus on up to £4,000 of savings a year. Savings and the bonus can be put towards the purchase of a first home, or withdrawn once they reach the age of 60.
- Shared Ownership enables people to buy a share of a new home built with a public grant provided for developing that home. Purchasers are able to buy a share of between 25 per cent and 75 per cent (depending on what they can afford and what is available) and pay a subsidised rent on the remainder. Purchasers are able to buy further shares in their homes in minimum 10 per cent instalments.
More details on support from the Government towards home –buyers with small deposits can be found between pages 58-61 of the recently published Housing White Paper (February 2017):