First-Time Buyer Schemes in the UK

The Help to Buy Equity Loan in England ended in 2023 (final extended completions by 31 May 2023), but several other government-backed schemes remain that can help first-time buyers. Some save you money on deposit; others save you on mortgage rates; others make ownership affordable at a lower share.

This guide covers every active scheme in 2026: Lifetime ISA, First Homes, Shared Ownership, Right to Buy, Freedom to Buy (the permanent mortgage guarantee scheme), Help to Buy – Wales, New Build Boost, and the Armed Forces scheme — who qualifies, how to use them, and which combinations work together. It also covers Your First Home, announced on 26 September 2026 but not yet open.

Which first-time buyer scheme is still open in 2026?

Help to Buy in England closed to new applications on 31 October 2022, with final extended completions by 31 May 2023; these schemes are still open: the Lifetime ISA (25% government bonus on up to £4,000 a year, for homes up to £450,000; a replacement First Time Buyer ISA is planned, with no launch date yet), First Homes (30-50% discount on selected new-builds), Shared Ownership (buy a share, rent the rest), Right to Buy (discounts for long-term council tenants), Freedom to Buy (the permanent 95% mortgage guarantee), Help to Buy – Wales (new-builds in Wales, open until 31 March 2027), New Build Boost (selected new-builds in England and Wales) and the Armed Forces scheme. Announced but not yet open: Your First Home, a new-build equity loan for first-time buyers in England, with details due at the Budget on 28 October 2026.

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Lifetime ISA (LISA)

A government-boosted savings account specifically for first-time buyers or retirement.

How it works

• Anyone aged 18-39 can open a LISA
• Save up to £4,000 per tax year
• Government adds 25% on top — up to £1,000 per year free money
• Continue saving and receiving the bonus until age 50
• Use toward a first home up to £450,000, or keep for retirement (accessible from 60)

Key rules

• Property price cap — £450,000 (this hasn't moved since launch in 2017, which increasingly constrains it in London/South East)
• Must be a first-time buyer — never previously owned a UK or foreign property
• Must be buying with a mortgage — not cash
• Account must be open 12+ months before you can use the funds for a home
• 25% withdrawal penalty if you use the money for anything other than a first home or retirement

Worked example

• Save £4,000 per year for 5 years = £20,000
• Government adds £5,000 over those 5 years = £25,000 total
• That's a £5,000 genuine bonus toward your deposit, tax-free

Couples can both have LISAs — £8,000 per year combined contributions, £2,000 per year combined bonus.

When a LISA might not suit

• You expect to buy a property over £450,000 (the withdrawal penalty eats more than the bonus)
• You need access to the savings before 60 for non-housing reasons
• You're likely to buy within 12 months of opening (too soon)
• You're 40+ (can't open a new one)

LISA + a gifted deposit + a standard mortgage

These stack. Your LISA bonus goes into your deposit, parents' gift supplements it, and you take a standard FTB mortgage. No scheme conflicts.

The proposed First Time Buyer ISA

The government plans to offer a new First Time Buyer ISA in place of the Lifetime ISA but hasn't set a launch date. Until it launches you can still open a LISA, and if you already have one you can keep paying into it under the current rules afterwards, though you can pay into only one of the two accounts in any tax year. HM Treasury consulted on the new account in summer 2026 (22 June to 18 August). Its bonus, subscription limit and property price cap will be set at a future fiscal event.

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First Homes Scheme

A discount on new-build properties specifically for first-time buyers, administered by local councils. The scheme is still open, but national policy has moved away from it: the national 25% First Homes requirement was dropped in December 2024, the planning framework that applies from 17 August 2026 no longer mentions First Homes, and only 292 were completed in England in 2024-25. Our First Homes scheme 2026 guide covers where it stands, the resale rules and which lenders accept it.

How it works

• New-build properties sold at a 30–50% discount to open-market price
• The discount stays with the property forever — when you sell, the next buyer also gets the discount from the new price
• Helps first-time buyers get onto the ladder at below-market prices
• Priority often given to local buyers, key workers, or those with local family ties

Key rules

• Property must be on a participating development
• Household income must be below £80,000 (or £90,000 in London)
• Must be a first-time buyer
• Property price after discount capped at £250,000 (£420,000 in London) on the first sale; resales aren't capped
• Mortgage must cover at least 50% of the discounted price

Worked example

• Market-value new build: £330,000
• First Homes discount: 30% = £99,000 off
• You pay: £231,000 (under the £250,000 cap outside London)
• You own 100% of the property
• When you sell, next buyer gets 30% off the future market value (so the discount is locked in forever)

Where to find First Homes properties

• Developers marketing First Homes on new developments, and estate agents selling resale First Homes
• Your local council's housing or planning team (not every council still asks for First Homes)
• There is no national list or portal of First Homes

When First Homes might not suit

• Your area has no First Homes, either new or resale
• You're above the £80k income cap
• You want flexibility on resale (you'll have a harder time selling at full market rate)

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Shared Ownership

Buy a share of a property (from 10% under the current model, up to 75%; older leases start at 25%) and pay rent on the portion you don't own.

How it works

• Purchase a 10-75% share of a property from a housing association (25% minimum on older-model leases)
• Pay a mortgage on the share you own
• Pay rent on the share you don't own (typically 2.75% of the unowned value per year)
• Over time, buy more shares (called "staircasing") until you own 100% or a cap of 80% on some schemes

Key rules

• Household income typically capped at £80,000 (£90,000 in London)
• Can't afford a suitable home on the open market, AND be a first-time buyer, former owner, new household or existing shared owner moving
• Available on new-builds and some resale shared ownership properties
• Typically a 5-10% deposit on the share you're buying (not the full property)

The deposit benefit for lower-deposit buyers

Because you're only buying a share, your deposit goes further as a percentage of that share. Detailed in our new build guide →, but the headline:

• £15,000 deposit on a £300,000 property = 5% deposit (95% LTV)
• £15,000 deposit on a 40% share (£120,000) = 12.5% deposit (87.5% LTV) — better rates

Downsides

• You don't own the whole property
• Ongoing rent on the unowned share (plus service charges on leasehold flats)
• Staircasing requires a new valuation and legal work each time
• Selling can be slower — housing association usually has first right to sell

When Shared Ownership suits

• Deposit is the constraint, not income
• You're comfortable with the rent-plus-mortgage structure
• You want to get onto the ladder in an expensive area where full ownership is unaffordable
• You intend to staircase to 100% over time

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Right to Buy (RTB)

Long-term council tenants can buy their home at a discount.

How it works

• Council tenants of 3+ years can apply (rising to 10 years if the proposed reform becomes law)
• Discount depends on length of tenancy, up to a regional cash maximum
• Maximum discount: currently £16,000–£38,000 depending on region (the old £102,400 England / £136,400 London caps were cut on 21 November 2024)
• Further reforms, first set out in the government's July 2025 consultation response and confirmed on 28 April 2026, will raise the qualifying tenancy from 3 to 10 years and cap the percentage discount at 15% of value. They are being legislated through the Social Housing Bill (Commons second reading 10 September 2026) and are not yet in force
• You take a mortgage for the discounted price

Key rules

• Must have been a public sector tenant for 3+ years; the percentage discount rises for each year after 5, up to the regional cash cap
• Discount scales with years of tenancy
• If you sell within 5 years, some of the discount must be repaid
• Housing associations may offer Preserved Right to Buy to tenants who were previously council

Worked example

• Council property value: £200,000
• 10 years' tenancy in a house → 40% discount = £80,000 on paper, but the regional cash cap applies
• Outside London the cap is £16,000–£38,000, so the discount is capped at (say) £30,000 rather than £80,000
• You pay: £170,000
• Mortgage on £170,000, not £200,000 — still a meaningful head start, but nothing like the discounts available before the November 2024 cut

When RTB is a strong option

• You've been in council housing 3+ years and plan to stay in the property long-term
• Market rates are stable or rising (the discount locks in immediate equity)
• You can afford a small mortgage

Watchouts

• RTB properties often need modernisation
• Some councils restrict onward sale or include covenants
• Leasehold RTB flats may have management charges that eat into savings

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Freedom to Buy (Mortgage Guarantee Scheme)

A permanent government-backed scheme — launched in July 2025 as the successor to the temporary Mortgage Guarantee Scheme — that lets lenders offer 95% LTV mortgages with reduced risk.

How it works

• First-time buyers and movers can get a mortgage with just a 5% deposit
• The government guarantees part of the mortgage for the lender
• Lenders participating offer standard 95% LTV products under the scheme

Key rules

• More than 90% and up to 95% LTV (a deposit of 5% to just under 10%)
• Property value up to £600,000
• For residential purchases only (not BTL or second homes)
• Available on main residence only
• Repayment mortgage only (no interest-only)
• Not for shared ownership or shared equity
• Excludes borrowers with recent serious adverse credit (3 months' arrears in 2 years, CCJs over £500, IVA/bankruptcy in the last 3 years)

Which lenders participate?

Most major lenders take part, each with its own 95% LTV products under the scheme. The list changes, so ask your lender or broker whether a product is covered.

Is this scheme useful?

It's more of a market-stability tool than a discount. The scheme doesn't give you cheaper rates directly — it encourages lenders to offer 95% LTV products in conditions when they might otherwise pull them. In normal markets, many lenders offer 95% LTV products without the scheme.

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Armed Forces Help to Buy

Not to be confused with the general Help to Buy equity loan (closed in England in 2022–23). This is for serving armed forces personnel.

How it works

• An interest-free advance of up to 50% of your gross basic pay (including recruitment and retention pay, but not allowances), capped at £25,000.
• Use it towards the deposit and buying costs (legal, survey, Land Registry and estate agent fees) of a home you or your immediate family will live in. That can be your first home or a move, for example on a new assignment. It can't be used for a second property or a buy-to-let. If you already own a home, you must sell it before, or on the same day as, you complete the new purchase. In certain family or medical circumstances it can instead pay to extend or adapt the home you already own.
• Normally one advance per career; a further one is possible only in those family or medical circumstances.
• Repaid from your salary at 10% a year, so over 10 years. If you have less than 10 years left to serve, any balance comes from your final pay or terminal benefits.

Who qualifies

• Regular personnel (not reservists or the Military Provost Guard Service) who have at least 12 months' service, have completed Phase 1 training, have more than 6 months left to serve and have their Commanding Officer's approval.
• Tell your lender at the start. Lenders count the monthly repayment in affordability, and some limit how it can be used.

Stacking with other schemes

Compatible with LISA, First Homes, Shared Ownership, and Freedom to Buy. Can be a powerful boost for service personnel combined with a LISA.

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Help to Buy – Wales

The Welsh Government runs its own Help to Buy shared-equity scheme, separate from the English one that closed in 2022–23. It helps buyers purchase a new-build home in Wales with a smaller deposit, and applications must be submitted by 31 March 2027. Check current eligibility and price limits on gov.wales.

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New Build Boost (England and Wales)

A private scheme from lender Gen H (not a government scheme) for first-time buyers and home movers buying a new-build in England or Wales (not Scotland) on an eligible development: at present all Persimmon Homes and Charles Church developments and selected Lovell Homes sites (Gen H publishes the list). You put down at least 5%, take a Gen H mortgage of up to 80%, and Gen H lends the other 15% as an equity loan. You never pay interest on it, and for the first 5 years you owe exactly what you borrowed. After that, the amount you owe rises or falls with your home's value, capped at twice the original loan. You must repay it when you sell, at the end of the mortgage term or if you remortgage away from Gen H. Until then you can only choose Gen H's New Build Boost rates, which can be higher than standard 95% deals, so you may pay back more than you borrowed.

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Your First Home (England, announced, not yet open)

On 26 September 2026 the government announced Your First Home, a new equity-loan scheme in England for first-time buyers of new-build homes from developers that sign up to it. It is expected to support 2.5% deposits backed by a 20% government-backed equity loan, with an initial interest-free period, a household income cap and local property price caps. The details, costs and timetable are due at the Budget on 28 October 2026. It isn't open yet, so you can't apply, and no launch date has been set. It is a different scheme from First Homes.

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Stacking Schemes — What Works Together

Common combinations

LISA + Standard mortgage — straightforward, widely used. LISA bonus goes into deposit.

LISA + First Homes — yes, these stack. Use LISA savings (with bonus) toward deposit on a First Homes property. Provided property price after discount is under the LISA £450k cap.

LISA + Shared Ownership — yes. Use LISA bonus for the deposit on the share you're buying. Shared ownership properties typically cheaper than £450k cap.

LISA + Armed Forces Help to Buy — yes. Combine the LISA bonus with the AFHTB loan for a larger deposit.

First Homes + Shared Ownership — usually not simultaneously on the same property. Different schemes, different developers typically.

Freedom to Buy + LISA — yes. The guarantee scheme just enables the 95% LTV product; LISA funds the 5% deposit.

What doesn't work

• You can only use LISA for one property purchase
• The First Homes discount only applies to homes sold under the scheme. That means new-builds on participating developments, or a First Home resold by its owner through an estate agent at the same percentage discount on the current market value. You can't use it on an ordinary open-market home.
• Shared Ownership shares have their own resale restrictions

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Which Scheme Is Right for You?

If you're under 40 and saving toward a first home: you could consider a LISA. The account must be open for 12 months before you can use it to buy, so opening one earlier starts that clock. The 25% bonus is valuable, but taking money out for anything other than a qualifying first home (or after 60) costs a 25% withdrawal charge. You can open a LISA until the planned First Time Buyer ISA launches (no date has been set), and keep paying into an existing LISA under the current rules after that.

If you're looking at new-builds and income is under £80k: check whether your local council has First Homes allocations. 30% discount locked in forever is a big deal.

If property prices in your area are out of reach: Shared Ownership lets you get onto the ladder at a fraction of full purchase cost. Review the rent structure carefully before committing.

If you're a long-term council tenant: Right to Buy can be a significant saving. You can apply once you've been a tenant for 3 years; whether and when to buy depends on the property and your plans.

If you have only a 5% deposit: 95% LTV products are widely available (including via Freedom to Buy). Focus on rate and lender flexibility rather than the scheme itself.

If you're armed forces: combine AFHTB with a LISA for maximum boost.

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Frequently Asked Questions

Is Help to Buy still available?

Not in England: the Help to Buy Equity Loan closed to new applications on 31 October 2022; completions were due by 31 March 2023, with a final extended cut-off of 31 May 2023. In Wales, Help to Buy – Wales is open until 31 March 2027. The Help to Buy ISA closed to new savers in 2019, and Armed Forces Help to Buy is a separate scheme. In England, First Homes, Shared Ownership and (on selected new-builds) New Build Boost are the main alternatives. New Build Boost is also available on selected new-builds in Wales. Your First Home, a new equity-loan scheme for first-time buyers of new-builds in England, has been announced but isn't open yet; its details are due at the Budget on 28 October 2026.

Can I use a Lifetime ISA on a £500,000 property?

No. The LISA property price cap is £450,000 and hasn't increased since 2017. If the property price is above £450,000, you can still buy it but you'd have to withdraw LISA funds outside the scheme, which triggers the 25% withdrawal penalty — wiping out the government bonus.

What's the difference between First Homes and Shared Ownership?

First Homes: you buy 100% of a new-build (or a resale First Home) at a 30-50% discount to market value. The discount stays with the property forever. Shared Ownership: you buy a percentage share (10-75% under the current model), pay a mortgage on your share, and pay rent on the unowned portion.

Can two people both use their LISA on the same purchase?

Yes. Both can use their LISA toward the same first home, both receive the government bonus, and both continue to qualify as first-time buyers. Combined, two LISAs can add £2,000/year of government bonus toward a joint purchase.

Does Shared Ownership save money long-term?

It depends. In the short term, yes — lower deposit and lower mortgage. In the long term, you pay rent on the unowned share AND mortgage on the owned share, which in rising markets can exceed what a full mortgage would have cost. Staircasing closes that gap over time but involves legal and valuation costs each time.

Can I get a mortgage on a Shared Ownership property?

Yes. Most major UK lenders (Halifax, Nationwide, Santander, Barclays, Leeds BS, Skipton BS, Lloyds) offer Shared Ownership mortgages. Deposit requirements are typically 5-10% of the share you're buying, not of the full property value.

Is Right to Buy being phased out?

No, Right to Buy still operates in England. Scotland and Wales have both abolished their versions. Discounts were cut in November 2024, and the Social Housing Bill, now going through Parliament, would raise the qualifying tenancy from 3 to 10 years and cap the percentage discount. Those reforms are not yet law, and the scheme remains available for qualifying council tenants.

What's Freedom to Buy?

Freedom to Buy is the permanent mortgage guarantee scheme launched in July 2025, replacing the temporary Mortgage Guarantee Scheme. The government guarantee allows lenders to offer 95% LTV mortgages with reduced risk to themselves. It doesn't give you cheaper rates directly — it encourages lenders to offer 95% LTV products. In strong markets, many 95% LTV products exist outside the scheme anyway.

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Related Guides

• The Full Buying Journey →
• Getting Mortgage Ready →
• First-Time Buyer Affordability →
• How Deposit Size Affects Borrowing →
• Gifted Deposits Complete Guide →