Help to Buy Is Gone. What First-Time Buyer Schemes Actually Exist in 2026?

If you have been saving for a deposit over the past two years, you probably heard something vague about Help to Buy ending. Unless you checked the detail, you might still be waiting for it to come back. It will not.

The Help to Buy equity loan scheme closed to new applications in October 2022 and fully wound down in March 2023. No replacement was announced. What replaced it was not a single scheme but a collection of four separate programmes, each designed for different buyers at different stages. That makes them less generous in some cases, more expensive to navigate, and much less well marketed.

Here is what actually exists in 2026, what each one is for, and how to tell which (if any) will help you.

What are the four first-time buyer schemes available in 2026?

There are four government-backed schemes still running. Each one works differently and targets a different type of buyer. Here is the full comparison.

How does the Lifetime ISA work for first-time buyers?

The Lifetime ISA (LISA) is the friendliest scheme for savers. It costs nothing to open and requires no house hunting, no income verification, no affordability checks.

You put money into a savings account or stocks-and-shares account. The government adds 25% up to a maximum of £1,000 per year. That happens every year until age 50. So a 25-year-old who saves £4,000 a year gets £1,000 free from the government, every year, for the next 25 years. That is £25,000 of free money.

The catch: you can only withdraw the money penalty-free if you are buying your first home and the property costs up to £450,000. If you want the money for something else, the government claws back the bonus plus a penalty. The penalty is harsh — withdraw at age 35 to buy a £500,000 flat and you lose £1,750 (the bonus you have earned so far plus interest).

For most first-time buyers aged under 40 with time to save, this is the best starting point. The government literally gives you free money. You can combine it with a mortgage.

How does Shared Ownership work and what does it really cost?

Shared Ownership lets you buy a percentage stake in a property and pay rent on the part you do not own. The percentage you buy usually ranges from 10% to 75%, but 25% to 50% is more typical.

The appeal is obvious: you need a much smaller deposit. To buy a 25% stake in a £300,000 flat, your deposit is 5% of £75,000 = £3,750, not £15,000. You get onto the property ladder faster and with less cash upfront.

Who qualifies? You must be a first-time buyer (or a previous homeowner who cannot afford to buy now). Your household income must not exceed £80,000 per year, or £90,000 in London. The property must be new build or newly converted — you cannot use Shared Ownership on a second-hand property.

One real advantage: you can staircase. That means you can buy more equity in the property over time. Bought 25% and now you have more savings? Buy another 25% next year and reduce the rent. This is a genuine route to full ownership, though not everyone finds a property and housing association willing to support it long-term.

What is the First Homes scheme and who qualifies?

The First Homes scheme offers new build properties at a mandatory discount of at least 30% compared to the open-market price. On a £300,000 new flat, you might pay £210,000 or less.

Who qualifies? First-time buyers only. Household income must not exceed £80,000, or £90,000 in London. The property must be new build or very newly converted.

The discount is genuine and substantial. If the developer is selling similar properties on the open market at £300,000, the First Homes buyer pays £210,000. That is real money.

One thing to know: the discount applies permanently to the property. When you sell, you must pass the same percentage discount on to the next buyer. This applies indefinitely — the discount is not clawed back or time-limited. The property carries this affordable housing designation forever.

That said, buying at 30% discount still gives you an advantage: your home equity starts 30% ahead. You are not relying entirely on house-price appreciation to build wealth. For buyers focused on long-term ownership, First Homes can be very attractive, especially in regions where new build supply is good.

How does the Mortgage Guarantee Scheme work with a 5% deposit?

The Mortgage Guarantee Scheme is not specifically for first-time buyers, but it matters because it affects your borrowing options if you have a small deposit.

Here is how it works: if you have a 5% deposit and want a mortgage covering 95% of the property value, the lender takes on extra risk. The government guarantee sits behind that risk. If you default, the government compensates the lender — not you. This makes lenders willing to offer 95% mortgages they would otherwise refuse.

Without the guarantee, you would typically need 10% to 15% to access a mortgage above 80% LTV. With it, 5% is possible.

The catch: mortgages at 95% LTV typically come with a 0.25% to 0.5% interest-rate premium compared to 80% LTV mortgages. On a £250,000 mortgage at 4.5%, this costs an extra £600 to £1,200 per year. Over 25 years, that premium can exceed £20,000.

Is it worth it? If you need to buy now and genuinely cannot save another 5%, yes. If you can save another 5% in two years, maybe not. Do the maths with an independent mortgage broker before deciding.

Which scheme should you actually use?

The honest take

Help to Buy is gone and was designed (in hindsight) to boost the property market more than the buyers it was meant to help. The four schemes that replaced it are messier, each with different eligibility rules and hidden costs. But they are not useless.

For savers under 40 with modest incomes buying new builds, the combination of Lifetime ISA and First Homes is as good as Help to Buy ever was. The first step is always the same: open a Lifetime ISA if you are under 40. Everything else follows from there.

Frequently asked questions