First-time buyer schemes in the UK

With Shared Ownership you buy a share of a home — usually between 10% and 75% — and pay rent to a housing association on the share you don't own. You need a mortgage and deposit only on the share you're buying, so the upfront cost is much lower than buying outright.

Over time you can buy further shares (called 'staircasing'), often all the way up to 100%. It's generally available to households earning £80,000 a year or less (£90,000 in London), and the home is held on a leasehold basis.

The First Homes scheme offers selected new-build properties to first-time buyers at a discount of at least 30% off the market price — and that discount stays with the home when it's sold on, so future first-time buyers benefit too.

To be eligible you must be a first-time buyer, your household income must be £80,000 or less (£90,000 in London), and your mortgage must cover at least half of the discounted price. After the discount, the home must cost £250,000 or less (£420,000 in London). Local councils can prioritise people with a connection to the area or key workers.

Not a way to buy, but a powerful way to save: the Lifetime ISA adds a 25% government bonus (up to £1,000 a year) to money you put towards a first home worth £450,000 or less. It pairs well with the schemes above — you can use LISA savings for the deposit on a Shared Ownership or First Homes purchase.

The Help to Buy equity loan scheme has closed to new applicants, and you can no longer open a Help to Buy ISA. If you already hold a Help to Buy ISA you can keep saving into it, but new savers should look at the Lifetime ISA instead.

Separately, many lenders offer 95% mortgages, meaning you can buy with a 5% deposit without any specific scheme — worth comparing alongside the options above with a whole-of-market broker.