First-Time Buyer Schemes in the UK (2026)

By Wealthvieu · Updated

Getting on the property ladder in the UK is tough — the average first-time buyer puts down £47,000 and is 32 years old. But several government and private schemes can help reduce the deposit, lower monthly payments, or give you a bonus on your savings.

Table of Contents

Overview of First-Time Buyer Schemes

Scheme Type Max Benefit Available In
Lifetime ISA (LISA) Savings bonus 25% bonus (up to £1,000/year) UK-wide
Shared Ownership Part-buy, part-rent Buy 25-75% of a home England
First Homes Discounted purchase 30-50% off market price England
Right to Buy Council home purchase Up to £96,000 discount England
Stamp Duty Relief Tax savings Up to £6,250 saved England
Forces Help to Buy Military loan Up to £25,000 interest-free UK-wide (armed forces)
Shared Equity (Scotland) Government equity loan Up to 40% equity share Scotland
Help to Buy Wales Shared equity loan Up to 20% equity loan Wales
Co-Ownership (NI) Shared ownership Buy 50-90% of a home Northern Ireland

Lifetime ISA (LISA)

The LISA is the most widely available support for first-time buyers under 40.

How It Works

Feature Detail
Annual contribution limit £4,000
Government bonus 25% on contributions (up to £1,000/year)
Age to open 18-39
Age to use for home purchase 18+ (must be open at least 12 months)
Max property price £450,000
Penalty for non-qualifying withdrawal 25% of total withdrawn

LISA Savings Projections

Years Saving You Pay In Government Bonus Growth (5%) Total
1 £4,000 £1,000 £250 £5,250
2 £8,000 £2,000 £775 £10,775
3 £12,000 £3,000 £1,600 £16,600
4 £16,000 £4,000 £2,750 £22,750
5 £20,000 £5,000 £4,250 £29,250

A couple each using a LISA could accumulate nearly £60,000 over 5 years — bonus included.

LISA vs Regular ISA for House Deposit

Feature LISA Cash ISA Stocks & Shares ISA
Government bonus 25% None None
Annual limit £4,000 £20,000 £20,000
Counts toward ISA limit Yes Yes Yes
Property price cap £450,000 None None
Withdrawal penalty 25% (non-qualifying) None None
Minimum hold period 12 months None None

Best for: Buyers purchasing under £450,000 who can save for at least 12 months. The 25% bonus is unbeatable.

Stamp Duty Relief for First-Time Buyers

In England and Northern Ireland, first-time buyers get significant stamp duty savings:

Property Price SDLT (First-Time Buyer) SDLT (Home Mover) Savings
£200,000 £0 £1,500 £1,500
£250,000 £0 £2,500 £2,500
£300,000 £0 £5,000 £5,000
£350,000 £2,500 £7,500 £5,000
£400,000 £5,000 £10,000 £5,000
£450,000 £7,500 £12,500 £5,000
£500,000 £10,000 £15,000 £5,000
£625,000+ N/A (standard rates apply) — —

First-time buyers pay no stamp duty on the first £300,000 (for properties up to £625,000).

Scotland (LBTT)

First-time buyers in Scotland have a higher relief threshold:

Property Price LBTT (First-Time Buyer) LBTT (Standard)
Up to £175,000 £0 £0-£600
£200,000 £500 £1,100
£250,000 £1,500 £2,100
£300,000 £3,500 £4,600

Shared Ownership (England)

Shared ownership lets you buy a share (25-75%) of a new-build or resale home and pay rent on the rest.

How It Works

Feature Detail
Share you can buy 25-75%
Deposit required 5-10% of your share
Rent on remaining share Up to 2.75% of equity per year
Staircasing Buy additional 5%+ shares over time
Income cap £80,000 (£90,000 in London)
Available to First-time buyers and certain others

Example: £250,000 Home

Share Purchased Your Purchase Price Deposit (10%) Mortgage Monthly Mortgage (5%, 25yr) Monthly Rent (2.75%) Total Monthly
25% £62,500 £6,250 £56,250 £329 £430 £759
50% £125,000 £12,500 £112,500 £658 £287 £945
75% £187,500 £18,750 £168,750 £987 £143 £1,130
100% £250,000 £25,000 £225,000 £1,316 £0 £1,316

Shared ownership makes the deposit barrier much lower — £6,250 instead of £25,000.

Pros and Cons

Pros Cons
Much lower deposit (as low as £3,125 on a 25% share) Combined rent + mortgage can be high
Easier to get a mortgage Restrictions on modifications
Step onto the property ladder sooner Staircasing costs (legal fees, valuation)
Benefit from property price increases on your share Selling can be more complex

First Homes (England)

First Homes offers new-build properties at a discount of at least 30% off market value.

Feature Detail
Discount 30-50% off market value
Price cap (after discount) £250,000 (£420,000 in London)
Who can apply First-time buyers, local connection priority
Income cap £80,000 (£90,000 in London)
Discount stays with property Yes — future sales at the same discount
Mortgage required? Yes (on discounted price)

Example

Market Value First Homes Price (30% off) Deposit (10%) Mortgage
2-bed flat £250,000 £175,000 £17,500 £157,500
3-bed house £350,000 £245,000 £24,500 £220,500

Right to Buy (England)

If you’ve been a council or housing association tenant, you may be able to buy your home at a significant discount.

Feature Detail
Maximum discount (house) £96,000 (£127,900 in London)
Maximum discount (flat) £96,000 (£127,900 in London)
Qualifying period 3 years as a public sector tenant
Discount percentage 35-70% (houses), 50-70% (flats)
Repayment requirement Discount repaid if sold within 5 years (declining scale)

Discount by Tenancy Length

Years as Tenant House Discount Flat Discount
3 years 35% 50%
5 years 37% 52%
10 years 42% 60%
15 years+ 47-70% 65-70%

Scotland-Specific Schemes

Shared Equity (First Home Fund successor)

Feature Detail
Government equity stake Up to 40% (new-build)
No rent or interest On the government share
Property price limit Varies by area
Repayment When you sell or can afford it

First Home Fund (if reopened)

Previously provided up to £25,000 as a shared equity stake. Check current availability via the Scottish Government website.

Wales-Specific Schemes

Help to Buy Wales

Feature Detail
Equity loan Up to 20% of purchase price
Interest-free period 5 years
Property type New-build only
Price cap £300,000
Min deposit 5%
You mortgage 75%

Example: £250,000 New Build in Wales

Component Amount
Your deposit (5%) £12,500
Help to Buy equity loan (20%) £50,000
Mortgage (75%) £187,500
Monthly mortgage payment (5%, 25yr) £1,097
Equity loan (interest-free for 5 years) £0

Northern Ireland Schemes

Co-Ownership Housing

Feature Detail
Buy share 50-90%
Rent on remaining share Below market rate
Available properties New-build and resale
Income cap Based on affordability assessment

How to Maximise First-Time Buyer Benefits

Strategy for a Couple Buying a £300,000 Home

Action Benefit
Both open LISAs, save £4,000/year each for 3 years £33,200 combined (incl. £6,000 bonus)
Claim first-time buyer stamp duty relief £0 SDLT (save £5,000)
Consider shared ownership (50% share) Deposit of £15,000 instead of £30,000
Total benefit ~£11,000 in bonuses + savings

Comparing Your Options

Your Situation Best Scheme
Under 40, saving for deposit LISA (25% bonus is unbeatable)
Low deposit, first-time buyer Shared ownership (buy from 25%)
Buying new-build in England First Homes (30-50% off)
Council/housing association tenant Right to Buy (up to £127,900 off in London)
Buying new-build in Wales Help to Buy Wales (20% equity loan)
Armed forces Forces Help to Buy (£25,000 interest-free)

Key Takeaways

  1. Lifetime ISA gives a free 25% bonus on savings — the best starting point for anyone under 40
  2. Stamp duty relief saves first-time buyers up to £6,250 in England
  3. Shared ownership lets you buy with as little as £3,000-6,000 deposit
  4. First Homes offers genuine 30-50% discounts but supply is limited
  5. Right to Buy discounts can reach nearly £128,000 in London for long-term tenants
  6. Many schemes stack — use a LISA for your deposit AND claim stamp duty relief AND use shared ownership
  7. Scotland, Wales, and NI each have their own distinct schemes beyond England’s programmes