New First-Time Buyer Schemes Explained
With first time home ownership more complex than ever, let’s break down first-time buyer schemes,
July 14, 2026
Getting onto the property ladder in the UK has never felt more complicated. With Help to Buy long gone, stamp duty relief tightened, and mortgage rates still uncomfortably high compared to a few years ago, many aspiring buyers are understandably confused about what support actually exists in 2026.
Nevertheless, the good news is that several meaningful schemes are still very much alive, and for those who understand how to use them, they represent a genuine opportunity to buy sooner than you might think.
This article breaks down every current first-time buyer scheme, who qualifies, and, of course, how savvy property investors and buyers are using these routes to their advantage.
The biggest shift in the first-time buyer experience is the launch of Freedom to Buy. If you don’t know what that is, it’s the UK government’s permanent mortgage guarantee scheme that replaced the previous temporary scheme in July 2025.
In practice, Freedom to Buy works behind the scenes. The government backs a portion of the lender’s risk on high loan-to-value mortgages, which encourages banks to offer 95% LTV products, meaning you can buy a home with just a 5% deposit.
The scheme covers properties up to £600,000 across the UK, and major lenders including Lloyds, NatWest, HSBC, Barclays and Santander are all participating.
You don’t apply for Freedom to Buy separately. You simply apply for a 95% mortgage with a participating lender, and if they’re using the scheme, the guarantee sits in the background.
Also, it’s worth noting that a 5% deposit is the floor, not the target. The higher your deposit, the better your mortgage rate will be.
The First Homes Scheme is arguably the most powerful tool available to eligible buyers in England, yet it remains relatively underused.
Qualifying first-time buyers can purchase certain new-build properties at a discount of 30% to 50% below market value.
That discount is then locked in permanently and passed on to the next buyer when the property is sold, keeping it within reach of future first-time buyers.
Key eligibility criteria:
Local councils can apply additional criteria (for example, giving priority to key workers or long-term local residents), so availability will vary by area.
The scheme applies primarily to new-build homes, though some resale properties purchased through First Homes are also eligible.
Shared Ownership allows buyers to purchase a share of a property, typically between 10% and 75%, and pay rent on the remaining portion to a housing association. Over time, you can buy additional shares in a process called “staircasing,” working towards full ownership.
This route can be effective for buyers in higher-cost areas where outright purchase is out of reach. Because you’re only putting a deposit on the share you’re buying, your savings go considerably further.
A £15,000 deposit on a 40% share of a £300,000 property gives you an 87.5% LTV on that share, which unlocks better mortgage rates than a 95% LTV mortgage on the full price.
If you haven’t already opened a Lifetime ISA (LISA), this is the single most actionable thing most first-time buyers under 40 can do right now.
The government adds a 25% bonus to everything you save, up to £1,000 free money per year, and the total pot (your savings plus the bonus) can be used as your deposit on a home worth £450,000 or less.
Eligibility requirements:
The 12-month waiting rule is why acting sooner rather than later matters. The government is currently reviewing the LISA’s £450,000 price cap, so changes may be on the horizon, but as of today, this remains one of the most generous savings incentives available.
It’s worth being aware that the first-time buyer stamp duty relief was tightened from April 2025.
The threshold at which first-time buyers begin paying stamp duty has reverted to £300,000, down from the previous £425,000.
On a £400,000 purchase, that’s an additional £5,000 in tax that buyers now need to factor in. Budget accordingly.
Here’s what most first-time buyer guides won’t tell you: these schemes are tools, not a strategy in themselves.
The buyers and investors who truly succeed in UK property understand the full picture: how to identify the right areas, which types of property perform best over time, how to structure purchases efficiently, and how to make schemes like First Homes and Shared Ownership work within a wider property plan.
That knowledge is not something you pick up overnight. But it is something you can begin learning in a single evening.
We host a free online property training event run by some of the UK’s leading property experts, covering exactly this kind of in-depth, practical knowledge. This training will give you clarity, confidence, and a concrete next step.
*Seats are limited. Register your free place today and take the first real step towards property ownership done right.
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