Getting on the Property Ladder: Tips, Tricks, and Government Schemes

The ongoing housing crisis in the UK makes it seem almost impossible for young people to enter the property market.

Currently, the average home costs ten times the average salary, and in 2024, the vacancy rate for homes was below 1%.

The Help-to-Buy scheme concluded in March 2023, as it has been linked to increasing house prices.

Although the government has various other initiatives to assist first-time buyers, we also provide practical advice, essential dos and don’ts, and effective strategies to help you secure a home within your budget.

‍

Please note: Hello Mortgage operates as an independent mortgage broker under MyInfinity Finance Limited, authorised and regulated by the Financial Conduct Authority with firm reference number 672182.  We serve as a financial intermediary rather than a lender.

Government help schemes

Rent to buy

This government scheme helps tenants save for a deposit by offering rental properties at 20% below market rates. The reduced rent provides financial flexibility, making it easier to save for a future home purchase.

First-time buyer schemes

If you are a first-time buyer, you may be eligible for the ‘First Homes’ scheme, which allows you to purchase a home for 30–50% less than its market value. However, there are certain requirements you must meet to qualify. This scheme is available only in England, but similar programmes exist in other parts of the UK:

• Scotland: Low-cost Initiative for First-Time Buyers (LIFT)
• Northern Ireland: Right to Buy Scheme

For more information about the ‘First Homes’ scheme, click here.

Eligibility criteria

To qualify for these schemes, you must:

✔ Be 18 or older.

✔ Be a first-time buyer

✔ Be able to secure a mortgage for at least half of the home’s price

✔ Earn less than £80,000 per year before tax.

These criteria apply to all buyers purchasing the home together—if you’re buying with someone else, they must also meet these requirements.

Local eligibility rules

Local councils may impose additional eligibility criteria. Some councils prioritise discounts for:

• Key workers
• Individuals on lower incomes
• People from the local area

To check if your council has extra criteria, visit their website for details. For other mortgage options for first-time buyers, check out Hello Mortgage’s parent help blog.

Eligibility criteria for government schemes can vary by region and individual circumstances. Always verify your eligibility with the relevant authorities or a financial advisor.

Disclaimer: This material does not constitute financial advice and is not intended to be a recommendation of any financial product or service. You should seek advice from a qualified financial adviser before making any financial decisions.

Smart strategies for finding an affordable home.

Look at homes that have been on the market for 30+ days.

With the current shortage of available homes, properties sell quickly. If a home has been listed for two weeks or more, it might be overpriced and likely to have its price reduced.

Generally, if a property has been on the market for over 30 days with little interest, sellers may lower the price by 10% or more.

However, always research why a home has remained unsold for an extended period; some may have hidden issues.

Be cautious with fixer-uppers.

A home with a low asking price may seem like a great deal, but major renovations can become costly and stressful. If the property needs significant repairs, the costs may exceed the price of a move-in-ready home.

Before buying a fixer-upper, consider:

✔ Getting a structural survey

✔ Estimating renovation costs

✔ Factoring in unexpected expenses

If the home requires significant repairs, it may not be the best investment.

The highest offer doesn’t always win.

When buying a home, it’s not just about who offers the most money. Sellers also consider factors like:

• Emotional attachment – Some sellers prefer buyers who appreciate the home.
• Timeline flexibility – A buyer who can work with the seller’s moving schedule may be preferred.
• Requests for extras – Asking for too many additional items (e.g., appliances or furniture) can frustrate sellers.

If a home is slightly above your budget, make an offer anyway—the seller might accept it based on other factors.

Disclaimer: The strategies and tips provided are general suggestions. Always conduct thorough research or consult a property expert before making decisions regarding purchasing a home.

Conclusion

Getting onto the property ladder in the UK may seem overwhelming, but with the right approach, it’s possible. Take advantage of government schemes, be strategic in your home search, and understand what sellers value to increase your chances of finding an affordable home. Stay patient, explore all available options, and don’t hesitate to negotiate. With careful planning, your dream of homeownership can become a reality.

Important risk warning: Purchasing a home, taking out a mortgage, or participating in government schemes carries inherent financial risks, including but not limited to interest rate fluctuations, potential negative equity, and the possibility of losing your deposit. Seek professional financial advice before proceeding with any mortgage or home purchase.

‍

Hello Mortgage may charge a fee for certain services. For more information on our fees, please do not hesitate to contact us.

To speak with a qualified financial adviser, please contact Hello Mortgage at 0800 292 2557 or visit our website for more information.

SOCIAL MEDIA

‍

‍