Buying a Property

First-Time Buyer Schemes in 2026, Every Government Scheme Compared

From Lifetime ISAs to shared ownership and First Homes, several government-backed schemes can help first-time buyers onto the property ladder in 2026. This guide compares every option.

Published: 16 Mar 2026 · Updated: 16 Mar 2026 · 7 min read

#HouseBuying#UKProperty#FirstTimeBuyer#GovernmentSchemes#PropertyPassportUK

Overview of First-Time Buyer Support in 2026

The landscape of government support for first-time buyers has changed considerably over the past few years. Help to Buy Equity Loan closed to new applications at the end of 2023, leaving a revised set of schemes in place. This guide covers every scheme currently available in England in 2026. Buyers in Scotland, Wales, and Northern Ireland should check the devolved equivalents offered by their respective governments.

Lifetime ISA (LISA)

The Lifetime ISA remains one of the most straightforward and valuable tools available to first-time buyers. You can save up to £4,000 per year into a LISA, and the government adds a 25% bonus, up to £1,000 per year, on top of your contributions.

To use a LISA towards a property purchase:

You must be aged 18–39 when you open the account
The property must cost no more than £450,000
You must be a first-time buyer
You must have held the account for at least 12 months before using it

The LISA can be used for the deposit alongside a standard residential mortgage. If you withdraw funds for any purpose other than a first home purchase or retirement, a 25% withdrawal penalty applies, which effectively recovers the government bonus and reduces your own savings by a small amount. Check the current terms with the Financial Conduct Authority or your LISA provider before withdrawing.

Shared Ownership

Shared ownership allows you to buy a share of a property, typically between 10% and 75%, and pay rent on the remaining share to a housing association. Over time, you can purchase additional shares (a process called "staircasing") up to full ownership in most cases.

Feature	Detail
Minimum share	Typically 10%
Rent on unsold share	Charged by housing association
Staircasing	Buy further shares as finances allow
Property types	New build and resale shared ownership
Income cap	Varies by region, commonly £80,000 (£90,000 in London)
Eligible buyers	First-time buyers; existing shared owners

Shared ownership properties are leasehold, which means ground rent and service charges apply alongside your mortgage and rent payments. Buyers should budget carefully for all three costs and commission a full review of the lease before exchanging contracts.

First Homes Scheme

The First Homes scheme offers eligible first-time buyers a discount of at least 30% on the market value of a new-build property. The discount is permanent, when the property is eventually sold, it must be sold at the same percentage discount to the then-market value, preserving affordability for future buyers.

Eligibility requirements include:

First-time buyer status
Combined household income not exceeding £80,000 (£90,000 in London) at the time of purchase
Mortgage for at least 50% of the discounted purchase price

First Homes properties are only available in areas where local councils have adopted the scheme. Availability is therefore patchy and demand tends to be high in areas where it is offered.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme allows buyers to purchase a property with a 5% deposit, with the government providing a guarantee to participating lenders for a portion of the loan. This does not reduce the amount you borrow, it is designed to give lenders confidence to offer 95% loan-to-value mortgages, which many had withdrawn during periods of market uncertainty.

You borrow the full mortgage amount and pay it back in the normal way. You are not required to repay any government contribution. The scheme is available to both first-time buyers and home movers, on properties up to £600,000.

Right to Buy

If you are a secure council tenant in England and have been a public sector tenant for at least three years, you may be eligible to purchase your council home at a discount under the Right to Buy scheme. The discount is calculated based on how long you have been a tenant and the type of property (house or flat). Right to Buy is a separate programme aimed at social renters rather than open-market first-time buyers.

Stamp Duty Relief for First-Time Buyers

First-time buyers in England and Wales benefit from Stamp Duty Land Tax relief on properties up to £500,000. No SDLT is payable on the first £300,000, with the standard 5% rate applying to the portion between £300,001 and £500,000. Properties above £500,000 attract standard rates in full.

To qualify, neither you nor anyone you are buying with must have ever owned property anywhere in the world. Your solicitor must claim the relief on the SDLT return, it is not applied automatically.

Choosing the Right Scheme

No single scheme suits every buyer. Your choice will depend on the deposit you have saved, the price of properties in your target area, and your income. Property Passport UK can help you research properties in your target area before you speak to a mortgage broker or housing association, understanding asking prices and sold price history helps you assess which schemes you are likely to qualify for.