The UK government offers several schemes to help first-time buyers get onto the property ladder. From part-buy, part-rent models to savings bonuses and discounted homes, understanding what is available could save you thousands of pounds or make homeownership possible sooner than you thought. This guide explains the main schemes, how they work, and who qualifies.
For a complete overview of buying your first home, read our first-time buyer guide.
Shared Ownership
Shared Ownership allows you to buy a share of a property (typically between 25% and 75%) and pay a subsidised rent on the remaining share. This means you need a smaller mortgage and a smaller deposit, making it more accessible for buyers who cannot afford to purchase outright.
For example, if a property is worth £300,000 and you buy a 40% share (£120,000), you would need a deposit based on your £120,000 share. At 5%, that would be just £6,000, compared to £15,000 for a 5% deposit on the full price.
Over time, you can purchase additional shares in the property through a process called “staircasing,” eventually owning it outright if you wish. Shared Ownership is available on both new-build homes and resales of existing Shared Ownership properties.
To qualify, your household income must generally be £80,000 or less (£90,000 in London), and you must be a first-time buyer or a previous homeowner who cannot afford to buy now. The scheme is managed by housing associations, and you apply through them directly.
With Shared Ownership, a 5% deposit on a 40% share of a £300,000 home is just £6,000 — compared to £15,000 for a 5% deposit on the full price.
First Homes
The First Homes scheme offers new-build properties to first-time buyers at a discount of at least 30% off the market value. Some local authorities may offer discounts of 40% or 50%. The discount is applied at the point of sale and is locked into the property permanently, meaning it is passed on to future buyers.
To be eligible, you must be a first-time buyer aged 18 or over, and your household income must be no more than £80,000 (£90,000 in London). The discounted price must be no more than £250,000 (£420,000 in London). Local councils may set additional criteria, such as prioritising key workers or people who live or work in the area.
First Homes are funded through developer contributions and are available on qualifying new-build developments. You will still need a mortgage and a deposit, but both will be based on the discounted purchase price rather than the full market value.
Lifetime ISA
A Lifetime ISA (LISA) is a savings account that rewards you with a 25% government bonus on your contributions. You can save up to £4,000 per year, and the government will add up to £1,000 in bonus each year. Over several years, the bonus can make a meaningful difference to your deposit fund.
You must be between 18 and 39 years old to open a Lifetime ISA, and the property you buy must cost £450,000 or less. The LISA can be used alongside other schemes such as Shared Ownership. You can hold a cash LISA or a stocks and shares LISA, depending on your risk tolerance and timeline.
Be aware that if you withdraw funds from a LISA for any purpose other than buying your first home (or retirement after age 60), you will face a 25% government withdrawal charge. This effectively means you lose the bonus and a portion of your own contributions, so only use a LISA if you are confident you will use it for a property purchase.
Right to Buy
If you are a secure council tenant in England, you may be eligible to buy your home through the Right to Buy scheme at a significant discount. The discount depends on how long you have been a tenant, the type of property, and where it is located.
For houses, the maximum discount is £96,000 (or £127,900 in London boroughs). For flats, the maximum discount can be up to 70% of the property value, subject to the same monetary caps. You must have been a public sector tenant for at least three years to qualify.
Housing association tenants may have access to a similar scheme called the Right to Acquire, which offers smaller discounts. If you sell a Right to Buy property within five years, you may be required to repay some or all of the discount.
Which Scheme is Right for You?
The best scheme for you depends on your circumstances, income, and where you want to live. Here is a quick summary to help you compare:
| Scheme | Best for | Key benefit |
|---|---|---|
| Shared Ownership | Buyers with smaller deposits and lower incomes | Smaller mortgage and deposit needed |
| First Homes | Buyers in areas with qualifying developments | At least 30% discount on market value |
| Lifetime ISA | Savers aged 18–39 with time to build a deposit | 25% government bonus on savings |
| Right to Buy | Council tenants with 3+ years tenancy | Large discount on purchase price |
A mortgage broker can help you understand which schemes you are eligible for and find the best mortgage to go with them. Get started by completing our short online form.
- Shared Ownership lets you buy a 25–75% share and pay subsidised rent on the rest.
- First Homes offers at least 30% off market value on qualifying new-build properties.
- A Lifetime ISA adds up to £1,000 per year in government bonus — but early withdrawal is penalised.
- Right to Buy gives council tenants discounts of up to £96,000 (£127,900 in London).
- A broker can confirm which schemes you qualify for and find a compatible mortgage.