Help to Buy closed to new applications across England in March 2023, while Shared Ownership remains available for buyers who meet the eligibility criteria. Help to Buy offered an equity loan from government (up to 20% of the property value, or 40% in London) to reduce the mortgage needed, whereas Shared Ownership lets you buy a share of a property (typically 25% to 75%) and pay rent on the remainder. Both schemes aimed to reduce upfront costs for first-time buyers, but only Shared Ownership is currently open for new purchases.

Quick Comparison

FeatureHelp to Buy (England, closed 2023)Shared Ownership (England, ongoing)
AvailabilityClosed to new applicationsOpen to eligible buyers
How it worksEquity loan of up to 20% (40% in London) from governmentBuy 25%-75% share, rent the rest
Upfront cost5% deposit on full valueDeposit on your share only
Ongoing costMortgage + equity loan fee (after 5 years)Mortgage + rent on unsold share
Property typeNew-build onlyNew-build or resale (via housing association)
Equity loan repaymentDue on sale or after 25 yearsNot applicable
StaircasingNot applicableBuy further shares over time (10% minimum)
Income limit£80,000 (£90,000 in London)Varies by region and housing association

Help to Buy (England): What It Was

Help to Buy (equity loan) ran from 2013 to March 2023 in England. The government lent up to 20% of the property value (40% in London) interest-free for the first five years, meaning buyers needed only a 5% deposit and a 75% mortgage (or 55% mortgage in London). After five years, an annual fee of 1.75% of the outstanding loan value applied, rising each year by the Retail Prices Index (RPI) plus 1%.

Pros

  • Lower mortgage needed: a 20% equity loan reduced the loan-to-value (LTV) ratio, often securing a better mortgage rate.
  • Interest-free period: no charge on the equity loan for the first five years.
  • New-build purchase: helped buyers access newly built homes without a large deposit.

Cons

  • Equity loan grows with property value: if the property increased in value, so did the amount owed to government when you repaid.
  • Fees after five years: the annual charge of 1.75% (rising by RPI + 1%) added to the cost.
  • Restrictions on further borrowing: some lenders limited further advances or remortgaging while the equity loan was in place.
  • New-build premium: new-build properties often carried a price premium compared to resale homes.
  • Closed scheme: no longer available for new purchases as of March 2023.

Shared Ownership (England): What It Is

Shared Ownership, available through housing associations, lets you buy a share of a property (usually between 25% and 75%) and pay rent on the remaining share owned by the housing association. You take out a mortgage on your share and pay a subsidised rent (typically 2.75% per year) on the unsold portion. You can buy additional shares later (a process called staircasing), often in 10% increments, until you own the property outright.

According to GOV.UK, eligibility typically requires a household income below £80,000 outside London (£90,000 in London), and you must be a first-time buyer, an existing shared owner, or unable to afford a home on the open market.

Pros

  • Lower upfront deposit: you only need a deposit on the share you are buying, not the full property value.
  • Accessible for lower incomes: smaller mortgage and deposit make it easier to qualify.
  • Staircasing option: you can increase your ownership share over time as your finances improve.
  • New-build and resale: available on new-build developments and resale Shared Ownership properties.
  • Still available: open to new buyers who meet the criteria.

Read also: How Help to Buy and Shared Ownership Schemes Work for UK Buyers

Cons

  • Rent plus mortgage: you pay both a mortgage on your share and rent on the housing association’s share, which can be higher than renting alone in some areas.
  • Service charge and ground rent: you are usually responsible for 100% of the service charge and ground rent, even if you own only a 25% share.
  • Staircasing costs: buying additional shares incurs valuation fees, legal fees, and potentially Stamp Duty Land Tax (SDLT) once your total ownership passes the SDLT threshold.
  • Restricted resale: you typically must offer the property to other eligible Shared Ownership buyers first, which can slow the sale process.
  • Lease length: Shared Ownership properties are leasehold, and short leases can affect remortgaging or future sale value.

Which Scheme Suits You?

If You Were Considering Help to Buy (No Longer Available)

Help to Buy closed in March 2023. If you are looking now, Shared Ownership or a standard mortgage with a smaller deposit (some lenders offer 5% or 10% deposit mortgages for first-time buyers) are the current routes. The principles covered in foundational finance texts such as Principles of Finance explain the trade-offs between deposit size, loan-to-value, and monthly cost, which remain relevant when choosing between a larger mortgage and a Shared Ownership arrangement.

If Shared Ownership Fits Your Circumstances

Shared Ownership works well if:

  • Your income or deposit is too low to qualify for a full mortgage on a home in your area.
  • You can afford the combined mortgage, rent, and service charge payments.
  • You are comfortable with leasehold ownership and the restrictions on resale.
  • You plan to staircase (buy more shares) as your income grows.

If Neither Scheme Applies

If your income exceeds the Shared Ownership limit or you want freehold ownership with no ongoing rent, a standard mortgage (perhaps with a guarantor or a 95% LTV first-time buyer product) may be a better fit. Some first-time buyers also consider the Lifetime ISA, which offers a 25% government bonus on savings up to £4,000 per year, usable as a deposit on a first home up to £450,000.

Conclusion

Help to Buy offered a government equity loan to reduce the mortgage needed, but closed to new applications in England in March 2023. Shared Ownership remains available and lets you buy a share of a property while renting the rest, making it accessible for buyers with smaller deposits and lower incomes. Shared Ownership suits those who can manage combined mortgage and rent payments and plan to staircase over time, but it comes with service charges, resale restrictions, and leasehold tenure. If you are deciding between affordable home ownership routes, compare the total monthly cost (mortgage, rent, service charge) against a standard mortgage, and confirm your eligibility and the scheme rules with the housing association or developer before proceeding.

This article provides general educational information about home ownership schemes in the UK and is not regulated mortgage advice or personalised financial, lending, or legal advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Your home may be repossessed if you do not keep up repayments on your mortgage. Shared Ownership eligibility, rent rates, staircasing terms, and service charges vary by housing association and property; Help to Buy equity loan terms varied by region and date of purchase. Confirm current scheme availability, eligibility criteria, and costs with an FCA-authorised mortgage adviser, the relevant housing association, or MoneyHelper before making any decision.