Several government-backed schemes can help you get onto the property ladder with a smaller deposit or at a lower price. Each has its own rules, eligibility criteria and trade-offs. This guide explains the main options and how they compare.
Schemes change often and many differ between England, Scotland, Wales and Northern Ireland, so always check GOV.UK (or the relevant devolved government website) before you commit.
Key takeaways
- Shared Ownership lets you buy a share of a home and pay rent on the rest.
- A Lifetime ISA adds a 25% government bonus to savings for a first home up to £450,000.
- First Homes offers a discount of at least 30% but is being wound down.
- Right to Buy discounts in England were cut in November 2024; the scheme has ended in Scotland and Wales.
- Help to Buy has closed. A mortgage guarantee scheme supports 91–95% LTV lending — check current status.
Summary table
| Scheme | Where | Who it’s for | How it helps |
|---|---|---|---|
| Shared Ownership | UK-wide (rules vary) | Buyers who can’t afford a whole home | Buy a 10%–75% share; pay rent on the rest |
| First Homes | England | First-time buyers, local priority | At least 30% discount (being wound down) |
| Lifetime ISA | UK-wide | Savers aged 18–39 when opening | 25% bonus on up to £4,000 a year |
| Right to Buy | England (and NI’s House Sale Scheme) | Eligible social housing tenants | Discount on buying your council home |
| Mortgage guarantee scheme | UK-wide | Buyers with a 5%–10% deposit | Encourages lenders to offer 91–95% LTV mortgages |
| Help to Buy | — | Closed | No longer available to new buyers |
Shared Ownership
Shared ownership lets you buy a share of a home — under the current model in England, usually between 10% and 75% — and pay rent to a housing association or landlord on the rest. You take out a mortgage only for the share you’re buying, so the deposit needed is smaller.
Eligibility
In England, you generally need to have a household income below a set limit (higher in London) and be a first-time buyer, a former owner who can’t afford to buy now, or an existing shared owner wanting to move.
Staircasing
Staircasing means buying more shares over time. Each time you do, your rent falls. The price of each new share is based on the property’s value at that time, so if prices rise, further shares cost more.
Things to consider
- Shared Ownership homes are usually leasehold, so you’ll pay a service charge and may face restrictions. Read our tenure guide.
- You’re often responsible for all repairs, even though you don’t own 100%.
- Selling can be more complicated, as the landlord may have the right to find a buyer first.
First Homes (England)
First Homes are new-build homes in England sold to eligible first-time buyers at a discount of at least 30% compared to market value. The discount stays with the property, so it’s passed on when you sell.
- After the discount, the price must not exceed £250,000 (or £420,000 in London).
- Councils can set local criteria, such as a local connection or key worker status.
- Household income caps apply.
The government has announced that the First Homes scheme is being wound down, with no new First Homes requirements for new developments. Some homes may still be available on sites already agreed. Check GOV.UK and your local council for availability before relying on it.
Lifetime ISA
A Lifetime ISA (LISA) helps you save for your first home or for retirement.
- You must be aged 18–39 to open one.
- You can save up to £4,000 a year, which counts towards your overall ISA allowance.
- The government adds a 25% bonus — up to £1,000 a year.
- You can keep paying in until age 50.
Using it to buy a home
- The property must cost £450,000 or less.
- You must be a first-time buyer, buying with a mortgage.
- The account must have been open for at least 12 months.
- Your conveyancer must request the funds — you can’t just withdraw the cash.
The withdrawal charge
If you withdraw money for anything other than a qualifying first home, after age 60, or due to terminal illness, you’ll pay a 25% withdrawal charge. This takes back the bonus and a bit of your own money too. The £450,000 cap has not changed since the LISA was launched, so check it still works for where you want to buy.
Right to Buy
Right to Buy lets eligible council tenants in England buy their home at a discount.
- In November 2024, maximum discounts in England were significantly reduced, and the government has made further changes to eligibility. Check GOV.UK for current limits.
- Housing association tenants may have a similar Right to Acquire.
- If you sell within a set period, you may have to repay some of the discount.
Right to Buy has been abolished in Scotland (2016) and Wales (2019). Northern Ireland has its own House Sale Scheme for Housing Executive tenants.
Mortgage guarantee scheme
The government’s mortgage guarantee scheme encourages lenders to offer 91%–95% loan-to-value mortgages to buyers with a 5% to 10% deposit. The government provides a guarantee to lenders against part of their losses, but you remain fully responsible for the mortgage.
The scheme was made permanent in 2025 and has been promoted as the Freedom to Buy scheme. It’s available to first-time buyers and home movers on properties up to £600,000, through participating lenders. Check the current status and criteria on GOV.UK.
A smaller deposit means a higher loan-to-value, typically higher interest rates and a greater risk of negative equity if prices fall.
Help to Buy: closed
The Help to Buy equity loan in England closed to new applications in 2022, and similar schemes in Wales and Scotland have also ended. The Help to Buy ISA closed to new savers in 2019, although existing account holders could keep saving until November 2029 and must claim their bonus by December 2030.
If you already have a Help to Buy equity loan, remember it must be repaid when you sell, at the end of the mortgage term, or earlier if you choose. Interest fees apply after the first five years.
Other help to consider
- First-time buyer relief on Stamp Duty in England and Northern Ireland, and on LBTT in Scotland. Use our stamp duty calculator.
- Family-assisted mortgages and gifted deposits.
- Scotland and Wales have run their own shared equity schemes at times — check the Scottish Government and Welsh Government websites.
Is a scheme right for you?
Schemes can make buying possible sooner, but they come with conditions. Before you apply:
- Use our affordability calculator to see what you could borrow.
- Read the small print on resale restrictions, rent and service charges.
- Consider speaking to an independent mortgage adviser.
Then follow our step-by-step buying guide.
This guide is general information, not legal or financial advice. Rules change — check GOV.UK or speak to a qualified professional.