First-Time Buyer Guide: Schemes, Grants and Help Available in 2026

First-Time Buyer Guide: Schemes, Grants and Help Available in 2026

In England and Northern Ireland, stamp duty relief for first-time buyers has been less generous since April 2025. 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. The government plans to replace it for new savers with a First Time Buyer ISA from April 2029 (HMRC); that is not yet law, and existing holders keep their accounts. 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 without a withdrawal charge, 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, be buying with a mortgage, and use a conveyancer or solicitor, who receives the funds directly from your ISA provider. Since 29 October 2026, a first-time buyer withdrawing to buy a home costing more than £450,000 pays a 20% withdrawal charge. If you withdraw for any other reason before age 60, unless you are terminally ill, 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).

If you are buying with someone who also has a Lifetime ISA, you can both use your savings and bonus as long as you are both first-time buyers, 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 - usually between 25% and 75%, and as little as 10% on some homes - 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 usually buy additional shares (a process called staircasing), often up to 100% - but not every shared ownership lease allows that, so check yours (example council guidance on staircasing). 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 in England your household income must be £80,000 a year or less (£90,000 or less in London; the government has announced these will rise to £90,000 and £110,000 in London in the new year - written statement), you must be unable to afford all of the deposit and mortgage payments for a home that meets your needs, and you must be, for example, a first-time buyer, a former homeowner who cannot afford to buy now, or an existing shared owner who wants to move. If you already own a home, you must have completed its sale on or before the day you complete your shared ownership purchase (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 each time you staircase you will usually pay further costs such as solicitor and valuation 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 (a government equity loan towards the price of a new build home) has closed to new applications in England and is no longer available. You can still open a Lifetime ISA to save for a first 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 - the government adds a 25% bonus to what you pay in (up to £1,000 a year), and the 12 months you must wait before using it to buy starts from your first payment
• 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: 22 October 2026. Lifetime ISA and shared ownership changes added 3 November 2026 against gov.uk. This is general information, not financial advice - scheme rules change, always check the current eligibility on gov.uk.