According to a revealing survey by Uswitch, a staggering 50% of first-time buyers in the UK made their way onto the property ladder thanks to government initiatives. The First Homes Scheme stands out as the superhero here, aiding 36% of the surveyed buyers in their journey to homeownership over the past two years.

First Homes Scheme

This scheme is a golden ticket for those buying in their local area, offering a minimum of 30% (and up to 50%) discount on property prices. It’s particularly aimed at households earning up to £80K (or £90k in London), focusing on homes valued at a maximum of £250k (£420k in London). Key workers also get a shout out in this scheme, highlighting its inclusive nature.

Lifetime ISA

Following closely, the Lifetime ISA has been the choice for 29% of prospective homeowners. It’s a nifty savings account for those aged 18 to 39, allowing them to save up to £4k a year, while enjoying tax-free interest and a generous 25% bonus from the government.

The Role of Family in Homeownership

Family members, especially parents, have played a significant role in this journey. The survey shows that 34% of the respondents received financial assistance from their parents, with 24% getting a loan and 10% receiving it as a gift. This highlights the ongoing importance of family support in the daunting task of acquiring a first home.

An interesting finding from the survey was the ownership split – nearly half (48%) are sole property owners, while 33% embarked on this adventure with a partner.

The Overlooked Costs of Buying a Home

However, it’s not all smooth sailing. The survey shed light on a common oversight: additional costs. Only 7% were aware of mortgage admin fees, less than half considered survey costs, and a mere 40% thought about conveyancing costs. Surprisingly, 79% were unaware of potential stamp duty charges. Thankfully, there’s a silver lining with the current relief on first-time buyer stamp duty in England and Northern Ireland for properties up to £425,000.