Help to Buy ending: What you need to know

This article looks at the benefits of the popular scheme that has been running since 2013, the money this has saved first-time buyers, and the choices available when Help to Buy (HtB) Scheme ends. 


When is the Help to Buy scheme ending? 


Help to Buy ends in March 2023, with the scheme closing to new applicants on 31st October 2022. Help to Buy has helped over 355,000 households purchase a home since 2013, with 83% being first-time buyers. But with the scheme ending, there is a limited time for first-time buyers to reap the financial benefits. 

Our latest research report explores the impact of the end of the Help to Buy scheme.  


What is the Help to Buy equity loan scheme? 


The equity loan scheme offers a loan to first-time buyers that they can use towards the cost of buying a newly built home. This loan can pay for up to 20% (or 40% in London) of the purchase price of a new home which is interest-free for the first five years. This is one of the most appealing factors of the scheme to first-time buyers, but it does not end there.   

Three reasons why first-time home buyers should consider the scheme before it ends:  


  1. The 5% deposit – based on current house prices the average deposit for a first-time buyer using HtB in England is £12,250, increasing to £21,750 in London. Without a scheme, you can expect to pay a larger deposit of 10-30% of the property price  
  2. Lower monthly repayments – the equity loan is interest-free for the first five years, meaning the total monthly repayments are lower than other alternative buying options   
  3. Smaller mortgage required – when combining a 5% deposit with either a 20% or 40% equity loan, the mortgage would need to cover 75% or 55% of the property value, respectively. This makes it easier to satisfy mortgage borrowing regulations which usually limit buyers to up to 4.5 times their income   



Will Help to Buy be extended beyond 2023? 


There are currently no plans for the government to extend the scheme beyond 2023. The government has confirmed that the scheme will end on 31st March 2023. 


What choices do I have after Help to Buy ends? 


As the government scheme closes, the big question is what alternative home ownership schemes are available? We have analysed three of the leading schemes on the market that offer routes onto the property ladder for new and existing homeowners in varying financial positions. 



  • Deposit Unlock is the only scheme that offers full and outright ownership of your new home - available for first-time homebuyers and those purchasing a second home. However, since this scheme requires the largest mortgage, income requirements are significantly higher than the rest. Consequently, monthly mortgage repayments for Deposit Unlock are also higher than other options 
  • Shared Ownership provides options to consumers on a range of affordability levels, offering the ability to purchase anything between a 10% and 75% share of a property. The scheme allows those who may not have the finances to buy outright, to purchase their home now and reach full ownership in the future
  • First Homes provides the discounted sale of a new build property to eligible first-time buyers. However, more stringent eligibility criteria prioritise local key workers. Nonetheless, monthly repayments and income requirements could be lower than a HtB purchase with a 20% equity loan


“Help to Buy has been a huge benefit to first-time buyers across the UK. Our report dives into the numbers but there is no doubt that the end of Help to Buy is going to cause shockwaves within the market.  CBRE sales have a number of schemes still being able to offer Help to Buy although these opportunities are becoming fewer as we head towards October. 

If you would like to know more please reach out to our sales team.  New Homes and Developments Available with Help to Buy | CBRE Residential” – Shaun Macnamara   

Visit our HtB guide for first-time homebuyers, to make the most of the government-backed scheme before it ends. 


Author - Michael McGill