The UK government offers several schemes to help people buy their first home or access affordable housing. Some provide direct financial bonuses, others allow you to buy a share of a property, and some provide guarantees that enable lenders to offer mortgages to buyers who might otherwise struggle. This guide covers every active scheme as of 2026, including eligibility requirements, how to apply, and the real-world pros and cons.
Lifetime ISA (LISA)
The Lifetime ISA is arguably the best tool available for first-time buyers under 40. You can save up to £4,000 per tax year, and the government tops up your contributions with a 25% bonus — that is up to £1,000 of free money every year.
You can open a LISA at any time between age 18 and 39, and continue contributing until age 50. The funds can be used towards your first home (up to £450,000) or kept until age 60 for retirement. If you withdraw for any other purpose, you lose the government bonus plus a 6.25% penalty on your own contributions.
Eligibility
- Aged 18–39 when you open the account
- UK resident
- First-time buyer (never owned property anywhere in the world)
- Property must cost £450,000 or less
- Account must have been open for at least 12 months before use
- Must be buying with a mortgage (not cash)
Advantages
- 25% government bonus is extremely generous
- Can save up to £4,000/year (£1,000 bonus)
- Available as cash or stocks & shares LISA
- Easy to open with most major banks and platforms
- Doubles as retirement savings if you do not buy
Disadvantages
- £450,000 property price cap excludes expensive areas
- Must wait 12 months before using (plan ahead)
- Penalty for non-qualifying withdrawals
- Only one LISA per person (not per couple)
- Cannot use the bonus with cash purchases
How to apply: Open a LISA with any approved provider (including AJ Bell, Hargreaves Lansdown, Moneybox, or Skipton Building Society). Start contributing as soon as possible to maximise bonuses and meet the 12-month minimum.
Shared Ownership
Shared Ownership allows you to buy a share of a property (between 25% and 75%) and pay rent on the remaining share to a housing association. This means you need a smaller mortgage and a smaller deposit — for example, a 10% deposit on a 25% share of a £300,000 property is just £7,500.
Over time, you can buy additional shares in the property (a process called "staircasing") until you own it outright. Each staircasing step requires a new valuation, and the price is based on the market value at that point — not the original purchase price.
Eligibility
- Household income below £80,000 (£90,000 in London)
- First-time buyer, or you used to own but cannot afford to buy now
- Cannot currently afford to buy a suitable home outright
- Not in mortgage arrears or have unsatisfied CCJs
- Priority given to existing shared ownership tenants, armed forces personnel, and council housing tenants
Advantages
- Much smaller deposit required
- Smaller mortgage means lower monthly payments
- Can staircase to full ownership over time
- Properties are often new-build
- Access to areas otherwise unaffordable
Disadvantages
- You pay rent AND a mortgage
- Rent increases (usually RPI + up to 0.5%)
- Service charges can be high (especially new builds)
- Selling is more complex — housing association has first refusal
- Staircasing based on current market value, not original price
- Leasehold, so ground rent and lease restrictions apply
How to apply: Search for Shared Ownership properties on housing association websites or through the government's Own Your Home portal. You will need to register with the local Help to Buy agent for your region.
First Homes
First Homes is a scheme that offers new-build properties to first-time buyers at a discount of at least 30% (and up to 50% in some areas) below market value. The discount is passed on to future buyers when you sell, keeping the property affordable in perpetuity.
For example, if a new-build flat has a market value of £300,000 and your local authority offers a 30% First Homes discount, you would pay £210,000. When you sell, the next buyer must also be an eligible first-time buyer and will receive the same 30% discount on the new market value.
Eligibility
- First-time buyer
- Household income below £80,000 (£90,000 in London)
- Property price after discount must be £420,000 or less (£420,000 in London)
- Must be purchased with a mortgage (at least 50% of discounted price)
- Local connection requirements may apply (set by individual councils)
- Priority given to key workers and armed forces personnel in some areas
Advantages
- 30–50% discount on market value
- New-build properties with warranties
- Can be combined with other schemes (including LISA)
- Full ownership from day one
Disadvantages
- Very limited availability — developer must include First Homes
- Discount restriction reduces resale flexibility
- Must sell to another eligible buyer at same discount rate
- New-build premium may offset some of the discount
- Cannot rent the property out
How to apply: First Homes are sold through participating developers. Check your local council's website or the Own Your Home portal for available properties in your area.
Right to Buy
Right to Buy allows council tenants in England to purchase their council home at a significant discount. The discount depends on how long you have been a council tenant and the type of property. As of 2026, the maximum discount is £102,400 (or £136,400 in London boroughs).
For houses, you receive a 35% discount after 3 years as a tenant, rising by 1% per year to a maximum of 70%. For flats, the discount starts at 50% after 3 years and rises by 2% per year to a maximum of 70%.
Eligibility
- You are a secure tenant of a council property in England
- You have been a public sector tenant for at least 3 years (does not have to be consecutive or the same property)
- The property is your only or main home
- You do not have an unspent possession order, bankruptcy, or debt arrangement
Advantages
- Huge discounts (up to £136,400 in London)
- You already know the property and area
- Can use the discount as your deposit
- Established community and neighbours
Disadvantages
- Must repay some/all discount if you sell within 5 years
- Council has first refusal if you sell within 10 years
- You become responsible for all maintenance and repairs
- Flats may have high service charges
- Some properties are excluded (sheltered housing, etc.)
How to apply: Download the Right to Buy application form (RTB1) from gov.uk or request one from your council. The council must respond within set timeframes.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme encourages lenders to offer 95% LTV mortgages by providing a government guarantee on the portion of the mortgage above 80% LTV. This is not a scheme you apply to directly — it works behind the scenes to ensure that 95% LTV mortgage products remain widely available.
The scheme was extended to June 2025 and the government has indicated continued support for high-LTV lending. When you take out a 95% LTV mortgage from a participating lender, the government guarantee gives the lender confidence to offer the product at a competitive rate.
Who Benefits
- Any buyer (not just first-time) with a 5% deposit
- Property value up to £600,000
- Must be a residential property (not buy-to-let)
- Must be a repayment mortgage (not interest-only)
How to access: Simply apply for a 95% LTV mortgage from any participating lender. Major banks including Lloyds, Halifax, NatWest, Barclays, HSBC, and Santander participate. Your broker can identify the best product.
Combining Schemes
Some schemes can be used together. For example, you can use your Lifetime ISA towards a Shared Ownership purchase or a First Homes purchase. You can also use the Mortgage Guarantee Scheme alongside a LISA. However, you cannot combine Shared Ownership with First Homes or Right to Buy.
Always check the specific combination rules with your mortgage adviser, as not all lenders support all scheme combinations.
Related Guides
- First-Time Buyer Checklist — your complete buying plan
- How Much Deposit Do I Need? — deposit requirements explained
- Improving Your Credit Score — prepare before applying
- Mortgage Application Guide — the full process step by step