Several government schemes help first-time buyers with deposits, reduced-price homes and alternative ways into ownership. This guide covers the new Your First Home scheme, Lifetime ISAs, First Homes, Right to Buy, shared ownership and more.
Quick comparison: government schemes for first-time buyers
Scheme | Best for | Key benefit | Eligibility requirements |
Your First Home | Buying a new build with a small deposit | 2.5% deposit with a 20% government equity loan | First-time buyers in England, income and price caps apply |
Lifetime ISA | Saving for a deposit | 25% government bonus on £4,000/year | Under 40 to open, use before 60 |
First Homes | Buying a discounted new build (limited supply) | 30-50% discount on market value | First-time buyers with income restrictions |
Right to Buy | Council tenants | £16,000 to £38,000 discount | Tenant of 3+ years with public sector landlord [check after any Right to Buy reforms] |
Right to Acquire | Housing association tenants | Fixed discount (varies by area) | Housing association tenants of 3+ years |
Shared Ownership | Lower income buyers | Buy 25-75% share, pay rent on rest | Household income under £80,000 (£90,000 in London) |
Help to Buy ISA | Existing savers only | 25% bonus on savings | Must have opened account before Dec 2019 |
Your First Home: a 2.5% deposit on a new build
Your First Home is a government scheme for first-time buyers in England buying a new build home. You put down a deposit of at least 2.5%, the government lends you 20% of the price through an equity loan and you take out a mortgage for the rest.
On a £300,000 home, that means a £7,500 deposit, a £60,000 equity loan and a £232,500 mortgage. Buying the same home with a 95% mortgage would need a £15,000 deposit and a £285,000 mortgage.
The equity loan is interest-free for an initial period but has to be repaid. The scheme only covers homes from developers who sign up to it, and there will be a household income cap and local price caps.
Status: The scheme was announced in September 2026 and isn't open yet. The full rules, including the caps and repayment terms, are due at the Budget on 28 October 2026, with pre-registration expected by the end of 2026.
- Buying through Your First Home? Find out how our panel conveyancers can help with. Your First Home scheme conveyancing.
Lifetime ISA: saving for your deposit
The Lifetime ISA (LISA) has become the go-to savings scheme for first-time buyers since the Help to Buy ISA closed to new applicants. Available to anyone aged 18-39, this scheme offers a generous 25% government bonus on your savings.
You can save up to £4,000 per tax year and receive a £1,000 annual bonus from the government. Over time, this can add up to significant support - save the maximum for five years and you'll have £25,000 towards your deposit (£20,000 saved plus £5,000 in bonuses).
Wondering how much you'll need in total? Our deposit guide for first-time buyers breaks down typical requirements and how to reach your savings goal.
Key Lifetime ISA features:
- Who can open one: Anyone aged 18-39
- Annual savings limit: £4,000 per year
- Government bonus: 25% (up to £1,000 per year)
- Property price cap: £450,000 anywhere in the UK
- Withdrawal rules: Use for first home or after age 60
- Early withdrawal penalty: 25% charge (you may get back less than you paid in)
Changes to the Lifetime ISA
The government consulted in summer 2026 on a new First Time Buyer ISA that would replace the Lifetime ISA for new savers. The bonus would be paid when you withdraw to buy, so there would be no withdrawal charge. Existing Lifetime ISAs would carry on. The details, including limits and the price cap, are expected at a future Budget.
Lifetime ISA vs Help to Buy ISA
If you're eligible for both (having opened a Help to Buy ISA before December 2019), you can have both accounts but can only use the bonus from one for your property purchase. The Lifetime ISA typically offers better returns due to the higher annual savings limit, and can be used with various mortgage types designed for first-time buyers.
First homes scheme: New builds at discounted prices
The First Homes scheme lets first-time buyers in England buy new build homes at 30% to 50% below market value. The discount stays with the property when you sell, so the home remains affordable for the next first-time buyer.
To be eligible, you must be over 18, able to get a mortgage for at least half the discounted price and have a household income below £80,000 (£90,000 in London). Councils can add their own criteria, often prioritising local residents and key workers.
First Homes hasn't been formally closed, but very few are now being built. The national requirement for councils to include First Homes on new developments was dropped in December 2024, and the planning rules that came in on 17 August 2026 no longer mention the scheme. Only 292 were completed in England in 2024-25.
Right to buy: a path to ownership for council tenants
The Right to Buy scheme allows council tenants to purchase their rented homes at significantly discounted prices.
How Right to Buy discounts work:
Following a government review, the maximum Right to Buy discounts were significantly reduced as of 21st November 2024. The new caps now range from £16,000 to £38,000, depending on your location—or 70% of your property's value, whichever is lower.
To qualify, the property must be your only or main home, and you must be a secure tenant with the right to live there for life. You'll need at least three years of public sector rental history, and the property must be self-contained.
This scheme has helped thousands of long-term council tenants become homeowners, often with substantial discounts that would be impossible to find on the open market.
How is the Right to Buy discount calculated?
The size of your Right to Buy discount is determined by:
- How long you've rented from a public sector landlord
- Whether you're buying a house or a flat
- The current value of the property
Right to acquire: for housing association tenants
How to buy a housing association property
Similar to Right to Buy but designed for housing association tenants, the Right to Acquire scheme offers fixed discounts on purchasing your rented home. These discounts typically range between £9,000 and £16,000 depending on location.
Personal eligibility requires at least three years of renting from a public sector landlord, though these years don't need to be consecutive. You cannot use the scheme if you're bankrupt, under a court order to leave your home, or currently a council tenant.
Property eligibility for Right to Acquire:
The property must meet specific criteria to qualify for the scheme:
- Built or purchased after the 31st of March 1997 with social housing grant funding, OR
- Transferred from council ownership after this date
- Registered with the Regulator of Social Housing
- Self-contained and your only/main home
The scheme allows for joint applications with tenancy sharers or with up to three family members who have lived with you for at least a year, making it flexible for different household situations.
Shared ownership staircasing process explained
Shared ownership offers a more gradual path to full homeownership by allowing you to purchase a portion of a property while paying rent on the remainder. This innovative approach makes getting on the property ladder more accessible with lower initial costs.
Typically, buyers purchase between 25% and 75% of a property, paying rent on the share retained by the housing association. Over time, you can buy additional shares through a process called "staircasing," eventually owning 100% if you choose.
The scheme serves households with incomes below £80,000 (£90,000 in London) and is open to first-time buyers or previous homeowners who cannot afford to buy now. A good credit history and ability to afford the combined costs of mortgage, rent, and associated fees are essential.
Costs to consider with shared ownership:
When budgeting for shared ownership, account for mortgage payments on your share, rent on the remainder, service charges, ground rent (for leasehold), maintenance costs, and potential staircasing fees.
Help to buy ISA: making your savings work harder
Though the Help to Buy ISA scheme closed to new applicants in November 2019, existing account holders can still benefit from this valuable savings tool until 2030.
The government adds a 25% bonus to your savings when you buy your first home. You can save up to £200 monthly with a maximum total of £12,000, potentially earning a £3,000 government bonus. This works particularly well when purchasing with another first-time buyer who also holds a Help to Buy ISA, as you can both claim the bonus.
Key Help to Buy ISA requirements:
- Property must be your intended residence (not for rental)
- Must be the only home you own (not part of a portfolio)
- Property price cap of £250,000 (£450,000 in London)
- Contributions must end by November 2029
- All bonuses must be claimed by November 2030
When purchasing your property, your conveyancing solicitor will handle claiming the bonus on your behalf, making the process straightforward for you as the buyer.
Financial support beyond government schemes
Many mortgage lenders have developed products specifically designed to address the challenges faced by first-time buyers. These include low deposit mortgages requiring only 5-10% down payments, guarantor mortgages where parents provide security, and longer-term mortgages that reduce monthly payments.
Support from the Bank of Mum and Dad, where parents gift or lend money for deposits, is also a significant and growing factor in helping buyers onto the property ladder.
Many of these financial products can be used alongside government schemes to further improve affordability.
The landscape of first-time buyer support continues to evolve, with both government and private sector initiatives responding to the changing housing market. Staying informed about these options ensures you can take advantage of all available assistance.
How Homeward Legal supports first-time buyers
Need conveyancing support for any of these schemes? Our solicitors handle all scheme-specific paperwork and requirements. Get an instant quote or call us on .
Frequently asked questions about government schemes
Can I use multiple government schemes together?
While you can't combine certain schemes (like using both Help to Buy ISA and Lifetime ISA bonuses), some combinations are possible. For example, you could use your Lifetime ISA savings towards a Shared Ownership purchase.
What if I've owned property abroad?
Most schemes require you to be a first-time buyer globally, not just in the UK. However, some schemes like Shared Ownership may accept previous homeowners who can't afford to buy now.
How long does the conveyancing process take with these schemes?
Government schemes can add 2-4 weeks to the standard conveyancing timeline due to additional paperwork and approvals. Our experienced team works to minimise delays.