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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 (you must make your first payment before you turn 40), and you can contribute up to £4,000 per year. The government adds a 25% bonus on everything you contribute - up to a maximum of £1,000 per year - so a full year's contribution of £4,000 becomes £5,000. You can save into a LISA until you are 50 (gov.uk/lifetime-isa).

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 buy the property at least 12 months after you make your first payment into the account. If you withdraw for any other reason, you pay a 25% withdrawal charge (which effectively means you lose your government bonus plus a small portion of your own savings) (gov.uk - withdrawing from your Lifetime ISA).

Both buyers in a joint purchase can each use their own LISA, potentially adding up to £1,000 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 is one of the affordable home ownership schemes currently listed on gov.uk (gov.uk - affordable home ownership schemes).

Shared Ownership properties are typically offered by housing associations. Eligibility and income thresholds vary - check the current rules for your area on gov.uk before relying on any specific figure - but they generally require you to be a first-time buyer (or a previous homeowner who cannot currently afford to buy) and not to already own another property (gov.uk/shared-ownership-scheme).

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 30% to 50% below market value to eligible first-time buyers in England. The discount is locked into the property - when you sell, you must sell at the same percentage discount to the next eligible buyer. Local authorities decide the exact discount level for developments in their area (gov.uk/first-homes-scheme).

Eligibility requires being a first-time buyer and having a household income of £80,000 or less (£90,000 or less in London) before tax. Some councils give priority to key workers or local residents. Check the current eligibility rules on gov.uk, as some criteria are set locally (gov.uk/first-homes-scheme).

Mortgage Guarantee Scheme

A new, permanent Mortgage Guarantee Scheme has been available since July 2025, replacing the earlier temporary scheme that closed to new mortgages on 30 June 2025. It enables eligible first-time buyers and home movers to buy a home with a deposit as small as 5% - supporting 91% to 95% loan-to-value mortgages - anywhere in the UK. The government provides participating lenders with a guarantee against a portion of their potential losses, making them more willing to lend at high loan-to-value ratios (gov.uk - 2025 Mortgage Guarantee Scheme).

Property price caps and other detailed eligibility terms apply - check the current scheme rules on gov.uk. Participation and pricing vary between lenders, and not all mortgage products under this scheme will be the most competitive, so compare rates carefully (gov.uk - 2025 Mortgage Guarantee Scheme).

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. The Lifetime ISA is the government's current alternative for first-time buyers saving towards a home (gov.uk - affordable home ownership schemes).

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 (gov.uk - SDLT residential property rates):

• 0% on the first £300,000
• 5% on the portion from £300,001 to £500,000
• Standard rates apply if the property costs more than £500,000 - you cannot claim first-time buyer relief at all

For example, a first-time buyer purchasing at £400,000 pays 5% on the £100,000 above the £300,000 threshold, which is £5,000 in stamp duty. Budget for this accordingly, and confirm the current rates and your own position on gov.uk (gov.uk - SDLT residential property rates).

Right to Buy

If you are a secure council tenant, you may be eligible to buy your home at a discount through the Right to Buy scheme. Eligibility, the minimum tenancy period, and the maximum discount have changed in recent years and some councils have paused the scheme, so the figures are not fixed - check the current rules and discount limits with your council and on gov.uk before relying on any specific amount (gov.uk/right-to-buy-buying-your-council-home).

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 mid 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.

Last reviewed: 14 June 2026. This is general information, not financial advice - scheme rules change, always check the current eligibility on gov.uk.