First-Time Buyer Guide: Schemes, Grants and Help Available in 2026
Getting onto the property ladder for the first time has become significantly harder over the past decade. Rising house prices, tighter mortgage affordability rules, and reduced stamp duty relief since April 2025 have all made the first step more challenging. However, a range of government-backed schemes, savings tools, and support options remain available. This guide covers what is still on offer in 2026.
Lifetime ISA (LISA)
The Lifetime ISA is one of the most valuable tools available to first-time buyers. You can open one if you are aged between 18 and 39, and you can contribute up to £4,000 per year. The government adds a 25% bonus on everything you contribute — so a full year's contribution of £4,000 becomes £5,000. You can save into a LISA until you are 50.
To use the LISA towards a property purchase, the property must cost £450,000 or less, and you must be a first-time buyer. You must also have had the account open for at least 12 months before using it. If you withdraw for any other reason, you pay a 25% penalty (which effectively means you lose your government bonus plus a small portion of your own savings).
Both buyers in a joint purchase can each use their own LISA, potentially adding up to £2,000 of government bonus per year each to your combined savings.
Shared Ownership
Shared Ownership allows you to buy a share of a property — typically between 10% and 75% — and pay rent on the portion you do not own. This dramatically reduces the deposit required, since you only need to fund your share rather than the full property value. Over time, you can buy additional shares (a process called staircasing) until you own 100%.
Shared Ownership properties are typically offered by housing associations. Eligibility requirements include having a household income of £80,000 or less (£90,000 or less in London), being a first-time buyer (or a previous homeowner who cannot currently afford to buy), and not already owning another property.
Be aware that Shared Ownership properties are leasehold, and you will pay both rent and service charges in addition to your mortgage. Legal and transaction costs apply to the share you are buying, and staircasing to 100% each time involves additional legal fees.
First Homes Scheme
The First Homes Scheme offers newly built properties at a discount of at least 30% below market value to eligible first-time buyers. The discount is locked into the property forever — when you sell, you must sell at the same percentage discount to the next eligible buyer. Some local authorities have increased the discount to 40% or 50% for specific developments in high-cost areas.
Eligibility typically requires being a first-time buyer, having a household income of £80,000 or less (£90,000 or less in London), and obtaining a mortgage for at least 50% of the purchase price. Some councils give priority to key workers or local residents.
Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme allows buyers to purchase with a 5% deposit — giving access to 95% loan-to-value mortgages — on properties up to £600,000. The government provides a guarantee to the lender on part of the loan, making them more willing to lend at high loan-to-value ratios. The scheme is available to both first-time buyers and home movers.
Check current availability with lenders, as participation and terms have varied since the scheme launched. Not all mortgage products under this scheme will be the most competitive — compare rates carefully.
Help to Buy Equity Loan — Closed
The original Help to Buy Equity Loan scheme (where the government lent buyers up to 20% of a new build's purchase price interest-free for five years) closed to new applications in March 2023. It is no longer available.
Stamp Duty for First-Time Buyers
Following the April 2025 threshold changes, first-time buyer stamp duty relief is less generous than it was. You now pay:
- 0% on the first £300,000 (previously £425,000)
- 5% on the portion from £300,001 to £500,000
- Standard rates apply if the property costs more than £500,000 — no relief at all
A first-time buyer purchasing at £400,000 will now pay £5,000 in stamp duty, compared to £0 before April 2025. Budget for this accordingly.
Right to Buy
If you are a secure council tenant who has lived in your home for at least three years, you may be eligible to buy it at a significant discount through the Right to Buy scheme. Discounts of up to £102,400 (£136,400 in London) are available depending on the property type and how long you have been a tenant. Check current eligibility rules with your council, as the scheme has undergone various changes and some councils have paused it.
Practical Tips for First-Time Buyers
- Open a Lifetime ISA as soon as possible — even small early contributions benefit from the 25% bonus compounding over time
- Get an Agreement in Principle from a mortgage lender before viewing properties — it tells you what you can borrow and shows sellers you are serious
- Use a whole-of-market mortgage broker to access the full range of available products, including those not advertised directly to consumers
- Budget for all purchase costs (stamp duty, solicitor fees, survey, removals) on top of your deposit — not just the deposit itself
- Instruct a solicitor as soon as your offer is accepted — early instruction saves weeks off your timeline
This guide reflects schemes and eligibility criteria as of early 2026. Government schemes are subject to change — always check the latest details on GOV.UK or with a qualified mortgage adviser before making decisions based on any specific scheme.