A rundown of the latest government and lender schemes designed to help first-time buyers onto the housing ladder in 2026.
The deposit, not the monthly payment, is what keeps most first-time buyers renting. A range of government-backed and lender-backed schemes exist to bridge that gap — some reduce the deposit you need, some boost your savings, and some let you buy a share rather than the whole property. They are not interchangeable, and the right one depends heavily on your income, your savings and where you want to live.
Before you rely on any of the below, check the current rules on GOV.UK or with a mortgage adviser. Eligibility criteria, price caps and scheme availability are changed regularly, and schemes are opened and closed at short notice.
Lifetime ISA
A savings account for people aged 18 to 39 that pays a government bonus on top of what you put in, up to an annual contribution limit. The funds can be used towards a first home up to a maximum purchase price, provided the account has been open for at least twelve months.
The trap to understand is the withdrawal charge: take the money out for anything other than a qualifying first home or retirement and you lose a percentage of the total, which can leave you with less than you paid in. The property price cap has also not moved in line with house prices in some areas, so check it against your target market before committing years of savings.
Shared ownership
You buy a share of a property — typically starting somewhere between a quarter and three quarters — and pay rent to a housing association on the remainder. Because your mortgage is only against your share, the deposit required is far smaller than for an outright purchase.
Shared ownership homes are leasehold. Budget for rent on the unowned share, a service charge, and the cost of staircasing if you want to increase your share later. Resale is handled through the housing association and can take longer than an open-market sale, so it suits buyers who expect to stay put for a while.
Low-deposit and guarantee-backed mortgages
Mortgages at 95% loan-to-value are widely available, in some cases supported by a government guarantee to the lender. You will pay a higher interest rate than at lower LTVs, and affordability testing is applied strictly, but a 5% deposit is achievable for many people who could never assemble 15%.
Some lenders go further with 100% or near-100% products aimed at renters with a strong payment history. These are niche, carry conditions, and put you at immediate risk of negative equity if prices fall — worth understanding fully before you apply.
New-build deposit schemes
Industry-backed schemes allow low-deposit lending on new-build homes, which lenders otherwise treat cautiously. Availability depends on both the developer and the lender, so ask the site sales team which lenders participate on that specific development.
Separately, developers often offer their own incentives — deposit contributions, paying stamp duty, or covering service charges for a period. Treat these as a discount on price and make sure your surveyor and conveyancer know about them, since they affect the valuation.
Discounted-price schemes for local and key workers
Some new-build homes are sold at a fixed discount to market value, with the discount preserved on every future sale through a restriction on the title. These are usually prioritised for first-time buyers, local residents and key workers, and are allocated by the local council or developer. Income caps and price caps apply, and the resale restriction means you also give up part of any future gain.
Family-assisted mortgages
Guarantor, joint borrower sole proprietor and offset arrangements let a relative support your application without necessarily gifting cash outright — for example by placing savings in a linked account or accepting a charge over their own property. They can significantly increase what you can borrow, but they put your family member’s money or home at risk if you default. Both sides should take independent advice.
Right to Buy and Right to Acquire
Eligible council and some housing association tenants can buy their home at a discount linked to how long they have been a tenant. Discount levels and eligibility have changed several times in recent years and differ across the UK nations, so confirm the current position with your landlord.
If you are buying outside England
Scotland, Wales and Northern Ireland run their own shared equity and low-cost ownership schemes, and their property transaction taxes are separate from stamp duty in England. Do not assume an England-based guide applies.
Practical steps
- Check your credit file with the main agencies and correct anything wrong before applying.
- Work out your realistic budget with an adviser before you view, not after.
- Confirm which schemes your target properties actually qualify for — many are new-build only.
- Factor in the costs beyond the deposit: valuation and survey, conveyancing, searches, removals, and any transaction tax due.
- Compare the total cost over the period you expect to stay, not just the monthly payment.
Start browsing with our property for sale search, or look specifically at new homes, where most scheme-eligible properties are found.
This article is general information and not financial advice. Scheme rules, caps and availability change frequently — verify the current position on GOV.UK or with a qualified mortgage adviser before making any decision.
