Several government-backed schemes are still available to help first-time buyers in the UK get onto the property ladder. This guide explains which schemes are open, what each one does, and the key conditions attached to each.
This article provides general information only. It is not financial or mortgage advice. Your personal circumstances will affect which options are relevant to you. A qualified mortgage adviser or broker can help you work out what fits your situation.
What schemes are available for first-time buyers right now?
Three main government-backed routes are currently open to first-time buyers in England: the Lifetime ISA, Shared Ownership, and the First Homes scheme. Each works differently, and they suit different situations.
Help to Buy, which was the most widely used scheme for several years, closed permanently in 2023. It is no longer possible to apply.
The Mortgage Guarantee Scheme, which allowed lenders to offer 95% mortgages to buyers with small deposits, ended in June 2025. That scheme is now closed.
The schemes that remain open are explained below.
What is the Lifetime ISA, and who can use it?
The Lifetime ISA (often called a LISA) is a savings account with a government bonus attached. For every £4 you save, the government adds £1, up to a maximum bonus of £1,000 per tax year.
The important bit is that the bonus is only paid on contributions up to £4,000 per year. So the maximum you can save and earn a bonus on is £4,000 annually.
To open a Lifetime ISA:
- You'll need to be aged 18 to 39.
- The account must be open for at least 12 months before you use it to buy a home.
- The property must be your first home.
- The full purchase price must be £450,000 or less.
If you withdraw the money for any reason other than buying your first home (or after age 60, or on terminal illness), the government charges a withdrawal penalty. The penalty is currently set at 25% of the amount withdrawn. Because the penalty is applied to the total pot (including the bonus), this can mean you get back less than you originally saved.
Example: If you save £4,000 and receive a £1,000 bonus, your pot is £5,000. A 25% withdrawal penalty on £5,000 is £1,250, which is £250 more than the bonus you received. You would get back £3,750 of your original £4,000. This is why the Lifetime ISA is intended as a long-term saving vehicle, not a short-term one.
You can find full LISA conditions on the GOV.UK website and on MoneyHelper.
What is Shared Ownership, and how does it work?
Shared Ownership lets you buy a percentage share of a property (typically between 10% and 75%) and pay a subsidised rent on the remaining share, which is owned by a housing association.
Over time, you can buy additional shares in the property. This is called "staircasing". In most cases, you can eventually buy the property outright, though the rules vary by scheme.
Who is Shared Ownership for?
In England, Shared Ownership is available to:
- First-time buyers.
- People who used to own a home but cannot currently afford to buy one.
- Existing shared owners looking to move.
Your household income generally needs to be £80,000 or less per year (£90,000 or less in London). These income caps are set by the government and apply to the combined income of everyone who will be named on the purchase.
What does it cost?
You take out a mortgage on the share you are buying, which means your deposit is a percentage of that share rather than of the full property price. This can make the deposit significantly smaller than for an open-market purchase.
You also pay rent on the share you do not own. The rent is set by the housing association, and the total monthly cost (mortgage plus rent) is worth checking carefully before committing.
Shared Ownership properties are usually leasehold, which means there are also service charges and ground rent to consider.
You can search for Shared Ownership properties through the government's Help to Buy agent service and through housing associations directly.
What is the First Homes scheme?
First Homes is an England-only scheme that offers eligible first-time buyers a discount of at least 30% off the market price of a new-build home from a participating developer.
The discount is permanently attached to the property. When you sell, the next buyer must also be a first-time buyer, and the same percentage discount applies to the sale price.
Who qualifies?
To qualify for First Homes:
- The property must be in England.
- The discounted price must be £420,000 or less (£250,000 or less outside London).
- Household income must generally be £80,000 or less per year (£90,000 or less in London).
- Local councils can set additional local eligibility criteria, such as a preference for key workers or people with a local connection.
What does the discount cover?
The discount is off the developer's asking price, not the price you negotiate. So if a property is listed at £300,000 and the First Homes discount is 30%, the price to an eligible buyer would be £210,000.
Because the discount stays with the property, it can make the purchase price more affordable. However, you are buying into a restricted resale market, which is worth thinking through before committing.
Full details of the First Homes scheme are on GOV.UK.
What happened to Help to Buy?
Help to Buy was an equity loan scheme run by the government in England. It allowed first-time buyers to borrow up to 20% of a new-build home's value (40% in London) interest-free for the first five years.
The scheme closed to new applications in October 2022. The final deadline for completions was 31 March 2023. No new Help to Buy equity loans have been available since that date.
Buyers who took out a Help to Buy equity loan are still repaying those loans. If you have an existing Help to Buy loan, the relevant information is managed through your loan servicer (previously Homes England for loans in England).
What about stamp duty for first-time buyers?
In England and Northern Ireland, first-time buyers benefit from Stamp Duty Land Tax (SDLT) relief:
- No SDLT on the first £300,000 of a property's purchase price.
- 5% SDLT on the portion between £300,001 and £500,000.
- Properties priced above £500,000 do not qualify for first-time buyer SDLT relief.
These thresholds came into effect in October 2024. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT), each with separate first-time buyer rules.
The current SDLT rates for first-time buyers are confirmed on GOV.UK.
What to check before applying to any scheme
Each scheme has its own eligibility criteria, application process, and costs. A few things are worth thinking through before applying:
- Affordability: Being eligible for a scheme does not mean a lender will approve a mortgage. Lenders assess your income, outgoings, credit history, and deposit independently.
- Leasehold versus freehold: Shared Ownership and many First Homes properties are leasehold, which brings additional costs and legal considerations.
- Total monthly cost: For Shared Ownership in particular, the combined mortgage and rent payment can sometimes be comparable to an open-market purchase. Comparing the two is a useful step before deciding.
- Restrictions on selling: First Homes properties come with a permanent resale restriction. This affects who you can sell to and at what price.
- Independent legal advice: Property purchases involve legal contracts. A solicitor or licensed conveyancer is involved in any purchase, and it is worth making sure they have experience with whichever scheme you are using.
A mortgage broker familiar with first-time buyer schemes can help you compare what is available for your situation. MoneyHelper offers free, impartial guidance on mortgages and homebuying at no cost.
Frequently asked questions
Has Help to Buy ended? Yes. The Help to Buy equity loan scheme closed to new applications in October 2022, and the final deadline for completion was 31 March 2023. New applications are no longer possible.
What is the Lifetime ISA limit for a property purchase? The Lifetime ISA property price cap is £450,000. The account must be open for at least 12 months before you use it to buy a home, and the property must be your first. Withdrawing for any other reason before age 60 incurs a government penalty charge.
Can I use a Lifetime ISA with Shared Ownership? Yes. You can use your Lifetime ISA bonus towards a Shared Ownership purchase, provided the full market value of the property is £450,000 or less and you meet the other LISA eligibility conditions.
What is the First Homes scheme? First Homes is an England-only scheme where eligible first-time buyers can purchase a new-build home at a discount of at least 30% off the market price. The discount stays with the property when it is sold on.
Is Shared Ownership only available on new-build homes? No. While most Shared Ownership properties are new-builds, a Shared Ownership Resale scheme exists through housing associations, which allows you to buy a share of a previously owned property.
Do first-time buyers still pay Stamp Duty Land Tax? In England and Northern Ireland, first-time buyers pay no SDLT on properties up to £300,000, with relief available on properties up to £500,000. These thresholds were set in October 2024. Separate rules apply in Scotland (LBTT) and Wales (LTT).
Sources and further reading
- GOV.UK: Lifetime ISA, gov.uk/lifetime-isa
- GOV.UK: Shared Ownership scheme, gov.uk/shared-ownership-scheme
- GOV.UK: First Homes scheme, gov.uk/first-homes-scheme
- GOV.UK: Stamp Duty Land Tax first-time buyers relief, gov.uk/stamp-duty-land-tax/first-time-buyers
- MoneyHelper: Buying a home, moneyhelper.org.uk/en/homes/buying-a-home
For more on the overall cost of buying and mortgage options, see our mortgages guide.
- Has Help to Buy ended?
Yes. The Help to Buy equity loan scheme closed to new applications in October 2022, and the final deadline for completion was 31 March 2023. New applications are no longer possible.
- What is the Lifetime ISA limit for a property purchase?
The Lifetime ISA property price cap is £450,000. The account must be open for at least 12 months before you use it to buy a home, and the property must be your first. Withdrawing for any other reason before age 60 incurs a government penalty charge.
- Can I use a Lifetime ISA with Shared Ownership?
Yes. You can use your Lifetime ISA bonus towards a Shared Ownership purchase, provided the full market value of the property is £450,000 or less and you meet the other LISA eligibility conditions.
- What is the First Homes scheme?
First Homes is an England-only scheme where eligible first-time buyers can purchase a new-build home at a discount of at least 30% off the market price. The discount stays with the property when it is sold on.
- Is Shared Ownership only available on new-build homes?
No. While most Shared Ownership properties are new-builds, a Shared Ownership Resale scheme exists through housing associations, which allows you to buy a share of a previously owned property.
- Do first-time buyers still pay Stamp Duty Land Tax?
In England and Northern Ireland, first-time buyers pay no SDLT on properties up to £300,000, with relief available on properties up to £500,000. These thresholds were set in October 2024. Separate rules apply in Scotland (LBTT) and Wales (LTT).