The new first-time buyer scheme where you can BUILD a home with just 5% deposit


Thousands of ordinary homeowners can be helped to build their own house with only 5% deposit, thanks to the new government scheme.

department for leveling up, Accommodation And communities have announced their assistance for planning.


The government has launched a new scheme to help families build their own homes.credits: PA

This will allow those who don’t have big budgets to build their own and custom-design houses,

Applications for the scheme open on Monday, June 27.

With this scheme, the government can give you an equity loan based on the estimated cost to buy a plot of land and build your house.

The loan amount can range from 5% to 20% and 40% in London.

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Many people can’t afford to build their own. housesThe average deposit amount for the DIY option is around 25% of the land and building cost.

Hope this scheme will help people to do so with 5% deposit amount.

This includes people with disabilities or large families or elderly relatives who may need to build a ready-made home.

With a house costing £400,000 to build, you would usually need to raise £100,000. At 5% it would be just £20,000.

This comes with a struggle for first-time buyers to climb the property ladder, as home prices hit record highs.

Housing Minister Stuart Andrew said the scheme would “break down barriers for homeownership” and create jobs.

However, Tim Bannister, director of Property Science at Rightmove, said it could be a problem to build and budget suitable land for potential home builders applying for the plan.

He said: “The challenge will be to buy and build the land and obtain the necessary planning permission and mortgage,

“Those who want to take advantage of the scheme will still need to consider how much they are able to borrow from a lender, and whether it is enough to build the home they want or need.”

Meanwhile, Nick Mendes, a property expert at John Charcoal, advises you to stay near a plot of land if you reach that level.

He said: “You’ll want to make sure you stay close to being able to manage construction, reduce your costs and have a contingency fund.

“Especially in the current environment of delays, rising material costs.”

The total construction cost of those willing to join the scheme cannot exceed £600,000, or £400,000 if the land is already owned.

For more information you can visit government website,

What are other first time buyer plans?

If you do not want to take the government on the Help to Build Scheme offer, there are other options available to you.

The government has equity loans to help buy the scheme, and the application deadline is October 31.

The scheme sees the government lending up to 20% of the value of the home to home buyers, or up to 40% in London.

But, you have to deposit a minimum of 5% of the property purchase price.

You can get more information by visiting government website,

If you are a tenant of a housing association, you can also buy your property under the Right to Acquire scheme.

You can apply for this scheme if you have owned a public sector landlord for three years.

These landlords include housing associations, councils, the armed services and NHS trusts and foundation trusts.

Your property must also meet certain criteria.

It must be built or purchased by a housing association after March 31, 1997, and funded through a social housing grant provided by a housing corporation or local council.

The property also has to be transferred from a local council to a housing association after March 31, 1997.

On top of this, your landlord must be registered with Regulator of social housing.

The house you wish to buy should also be self-contained and be your sole or main home.

For more information, you can visit government website,

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Other plans, such as shared ownershipCan also help people on the property ladder.

Every week, we share the stories of people who have managed to climb the wealth ladder through our my first home series,

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