The different ways to buy a house in 2023

When thinking about how to buy a house or a flat in the UK, many will start looking for a home on the open market, but there’s more than just one way to buy property.

So, to help you find the option that best works for you, here are some of the various ways that you can buy your first home or second property in England, Wales and Scotland.

Shared Ownership

Shared Ownership offers many buyers a way of slowly stepping onto or up the property ladder, by making it more manageable for those who may have a smaller deposit or find it difficult to save up for a deposit whilst renting.

It allows you to buy a share of your new home from a housing association, typically between 25% to 75% of the home's value, whilst paying rent on the share that you don't own.

Find out more about how it works here.

Incentives for newly built homes

If you’ve been considering buying a newly built home, there are several factors you may benefit from, including energy savings, having little to no maintenance costs and being able to move in straight away (once completed).

To help you buy a new build, some developers offer various incentives or financial support packages:

• Key workers scheme, available for some developments that help public sector employees onto the property ladder
• Part Exchange, where you can use your current property as part-payment for the new property you want to buy (subject to status)
• Assisted Move scheme, where you’re assisted in selling your current property to buy a new build
• Many housebuilders will also offer bespoke schemes such as contributions to deposits, stamp duty and legal fees. Our team will be able to advise on where this is possible on a case by case basis.

All of these schemes are also available in Scotland and Wales, however may differ slightly in terms of what they offer, depending on the location and the developer.

Right to Buy:

If you are a tenant in a council house or housing association in England, Right to Buy is another way of buying a property. The scheme offers applicants, who have lived in the property for at least three years, a discount of up to £127,940 (£96,010 outside London) to help them make the move towards homeownership.

Note that Wales and Scotland no longer offer this scheme.**

Rent to Buy:

The English Rent to Buy scheme helps tenants save for a deposit to buy a property by offering them a discounted rental price. London has its own version of this, called London Living Rent, which works in a similar fashion.

Rent to Buy is not available in Scotland, and the Welsh Rent to Own scheme is now closed to new applicants.

Auctions:

Buying a property through an auction is often a faster and chain-free alternative to buying on the open market. It’s accessible to every type of property, every type of buyer and every type of seller.

One type of auction is the Modern Method of Auction, which combines the speed and certainty of a traditional auction sale, with the marketing expertise of an expert local estate agent. And, with a 95% completion rate, the Modern Method of Auction is an excellent option to consider.^ Find out more about it, here.

Help to Build equity loan:

If you’ve chosen to build a property, the Government scheme Help to Build may be the best alternative for you. The fund is available to those who buy a plot of land to build a home, for airspace development, as well as other options listed on the Government website.

It’s also available in Wales, under the name of Self Build Wales, and Scotland, Scotland Self-Build Loan Fund, with differing criteria for each.

Options available only in Scotland

• New Supply Shared Equity: This Scottish scheme is open to first-time buyers, but also to “people who have previously owned a home and have experienced a significant change in circumstances”.† It’s available across Scotland for those who want to buy a new build from a housing association or local council.
• Open Market Shared Equity: Open to first-time buyers who cannot afford the full price of a home on the open market, the Open Market Shared Equity scheme is open to first-time buyers and a variety of priority groups.
• Rural Housing Fund and Islands Housing Fund: Specifically aimed at rural and island areas in Scotland, this housing fund can help applicants build new homes, change commercial buildings into homes or make empty homes ready to rent or sell.

Options available only in Wales

• Homebuy: The Welsh Government scheme Homebuy helps buyers in certain areas of Wales to buy a home, as they otherwise may not be able to afford it. Applicants must contribute 70% of the purchase prices – whether through a mortgage or personal savings – and are subject to certain eligibility criteria.
• Rent to Own: Although this Government-backed scheme is now closed to landlords, applicants looking to buy a Rent to Own property may be in luck as some are still in the process of being built. The scheme runs for 5 years, and offers applicants to buy their rental property (if it is already part of the scheme).
• Help to Buy: This scheme has closed in England and Scotland, however, was extended until March 2025 in Wales.* To be eligible, buyers must be buying a property that is already registered with the scheme and has a maximum value of £300,000. Buyers must have a minimum deposit of 5% and be able to finance at least 80% of the property price, whether through a mortgage or personal savings.

In addition to the above options, applying for a loan is also a popular route when buying a property, as lenders have a variety of products available.

As you can see, there are different ways to buy a home in the UK – some may be more applicable or available to you than others. If you’ve been thinking about buying, why wait? Find your dream property today!

Sources:
* https://www.gov.wales/help-buy-wales/eligibility
** https://www.gov.scot/policies/social-housing/council-housing/ and https://www.gov.wales/right-buy-end-wales-month
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†https://www.mygov.scot/new-supply-shared-equity-scheme
MKT/UKON/160523