Help to Buy London FAQs

Buy a property with just a 5% deposit and up to 40% equity loan from the Government


Frequently asked questions


The London Help to Buy scheme is the same as the national scheme except that the Government’s contribution is increased to 40%.

Do I own the property?

Yes, you own 100% of the property but the Government lends you up to 40% and shares in any gains all the time you keep their loan.

Can I buy a home off plan?

Yes, you are able to reserve a new home ‘off plan’ (before the building is finished) at any time. However, you cannot exchange contracts more than six months before legal completion of the sale. You will also need to ensure that your mortgage offer remains valid through to legal completion.

Will I have to pay Stamp Duty?

The Government’s standard rules for Stamp Duty apply to all Help to Buy purchases. Stamp Duty is payable at the time of purchase, on the full purchase price. Note: There is currently no Stamp Duty to pay for first time buyers for the first £300,000 of the purchase price.

Who pays for repairs and on-going maintenance to my home?

It is your responsibility to repair and maintain your home, however new homes often come with a guarantee that will cover certain defects for up to 10 years after it was built. Your solicitor will be able to advise in more detail on this.

Are there any restrictions on the properties that I can purchase?

All Help to Buy homes are on new developments where the Agency has a registration agreement with the house builder and you can only purchase from these house builders. The scheme has a maximum price limited to £600,000.

Can I sublet my Help to Buy home?

No. Help to Buy is designed to assist you to move on to or up the housing ladder. If you wish to sublet, you will first have to repay the Help to Buy equity loan assistance. In exceptional circumstances (e.g. a serving member of the Armed Forces staff whose tour of duty requires them to serve away from the area in which they live for a fixed period) then sub-letting is allowed.

Can I own other homes and buy a Help to Buy home?

No. Help to Buy is designed to assist you to move up the housing ladder and must be your only residence. This means you will be expected to sell your current home (in the UK or abroad) if moving up the ladder.

What happens when I come to sell?

When you sell your Help to Buy home you will need to repay any outstanding amount of the equity loan. If you initially purchased with a 55% mortgage and a 5% cash deposit and have made no other repayments, you will repay 40% of the sale price whether it is higher or lower than the agreed sale price.

View a selection of available developments here

For full information see this Help to Buy Buyer’s Guide

Your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.