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Help to Buy London: The Scheme Explained

Zenyx Griffiths

Written by

11th Apr 2019 (Last updated on 23rd Oct 2020) 5 minute read

Help to Buy London

Help to Buy London are government-funded schemes that allow first-time buyers to get onto the property ladder more quickly. The Help to Buy schemes allows first-time buyers in London to buy a house with a minimum of a 5% deposit and has recently been extended by the government until 2023.

London is famous for its high prices and so these schemes offer first-time buyers a cheaper and easier way to buy and live in the city. Although the Help to Buy schemes are aimed at first-time buyers, there are a few options available to those who are previous homeowners. For example, if you have a household income of less than £90,000, you’re eligible for the London Shared Ownership scheme. To find out what you can borrow with a Help to Buy Equity Loan, use our Help to Buy calculator. 

There are a variety of London properties that include the Help to Buy schemes, helping to ensure that your London removals are efficient and stress-free. To help you begin, Compare My Move has created this guide including everything you need to know about the Help to Buy schemes in London, from the types of schemes available to how they could benefit you.  

What Help to Buy Schemes are Available in London?

There are a number of government-funded Help to Buy schemes in London, including the Help to Buy ISA, Help to Buy Equity Loan and Help to Buy Shared Ownership. The next few points will explain each London Help to Buy scheme and how they can help you.

Help to Buy ISA

The Help to Buy ISA is offered to first-time-buyers only to help them save for their first home and boost their savings by 25%. For every £200 you save, you’ll receive a government bonus of £50 with the maximum government bonus received being £3,000 overall. Once you’re close to purchasing your first house, you must instruct your solicitor or conveyancer to apply for your government bonus.

A benefit of the Help to Buy ISA account is that they’re available to each individual and not each household, meaning that if you’re planning on buying a property with a friend or partner, you could receive a government bonus of up to £6,000 to go towards your new home. You can use the Help to Buy ISA when the property has a purchase price of up to £450,000 in London.

To qualify you must:

  • be a UK resident with a valid National Insurance Number
  • be 16 and over
  • be a first-time-buyer and not own another property anywhere in the world
  • not have another active cash ISA in the same tax year

Help to Buy: Equity Loan

The Help to Buy Equity Loan London allows you to save for a minimum deposit of 5% on a new-build home in London whilst the government will loan you up to 40% of the value of the house. You will then need a mortgage of at least 55% to make up the rest of the costs. In London, a sustainability check will be carried out when you send your application.

One of the benefits of this scheme is that you won’t have to pay interest for the first five years of owning your home, giving you a head start in paying it back. The Help to Buy Equity Loan London is available to first-time buyers and homeowners looking to move to a new-build property.

Help to Buy: Shared Ownership

The Help to Buy Shared Ownership London scheme allows first-time buyers and families with a household income of less than £90,000 to buy a share of their house and pay rent for the remaining sum. Using this scheme, you will only need to pay a 5% deposit for the house whilst paying a discounted rent for the rest.  

As you begin to buy more shares of the house, your monthly rent will start to decrease. It’s a scheme mainly aimed at first-time buyers who are unable to afford to buy a property on the open market.

You are eligible if:

  • you have a gross household income of no more than £90,000 a year
  • you are an existing shared owner
  • you don’t already own a home or have sold one before purchase
  • you are unable to buy a property that suits your needs on the open market 

The Benefits of Help to Buy London

With the average price paid for a property in London at £636,199 and the current asking rent at £3,170 pcm according to Zoopla, many people are struggling to get onto the property ladder. This is especially so for first-time buyers looking to move to London as the task of saving up for a deposit seems more and more daunting.

However, it’s not as difficult as it seems! The Help to Buy London schemes are available to ensure a more efficient relocation with the chance to save up for a deposit much more quickly. They offer smaller deposits, are interest-free for five years and provide the opportunity to afford new-build properties even as a first-time buyer. It’s a good way to make your London conveyancing process much easier and give yourself a leg up when looking for your first home.

There are a variety of housing developers and estate agents that offer Help to Buy homes and apartments in London. Some of these include:

  • Redrow London
  • Bellway
  • The Period Property Specialists Ltd
  • Barratt London
  • JLL London
  • Network Home
  • Telford Homes

Help to Buy Properties in London

There are a variety of housing developments and areas of London that offer the Help to Buy schemes. To aid you in your move, we’ve listed a few London properties that offer the Help to Buy schemes, alongside the price.

Crofton Road Apartments, Peckham Rye

  • The Period Property Specialists Ltd
  • £550,000
  • There is one apartment left to purchase, but more Help to Buy apartments will be available to purchase within 3-6 months with a starting price of £450,000.
  • Help to Buy available

Millfields, Mill Green Road

  • Redrow London
  • Prices start at £575,000
  • Help to Buy available

Colindale Gardens, Colindale Avenue

  • Redrow London
  • Prices start at £385,000 for a one bedroom apartment.
  • Help to Buy available

Old Smoke House, 33-35 Monier Road

  • JLL London
  • Prices from £599,950
  • Help to Buy available

Battersea Exchange, 171-177 Battersea Park Road

  • JLL London
  • Prices from £600,000
  • Help to Buy available

All house prices are taken from the developers’ websites. Correct as of April 2019.

Saving Money on Your Move to London

To help you save both time and money on your move to London, fill out our quick and easy form to get connected with up to 6 reliable removal companies in your area. Simply enter your details and you could save up to 70% on the cost of your London removals.

Zenyx Griffiths

Before Compare My Move, Zenyx once wrote lifestyle and entertainment articles for the online magazine, Society19 as well as news articles for Ffotogallery.

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