First-time buyer schemes compared
Last checked 28 September 2026
Your First Home joins a handful of other ways to buy a first home in England. They work very differently: one lends you part of the price, one lets you buy part of the home, one sells the home at a discount, and one tops up your savings. Here's how they compare as of September 2026.
Independent guide. We are not the government, Homes England, a housebuilder or a lender, and this is not an official site for the scheme. Everything here is general information to help you understand it, not financial advice. The scheme's rules are due at the Budget on 28 October 2026.
| Your First Home | Shared Ownership | First Homes | Lifetime ISA | |
|---|---|---|---|---|
| How it helps | 20% equity loan | Buy a share (10% to 75%), rent the rest | New home sold at 30% to 50% off | 25% bonus on savings |
| Your deposit | At least 2.5% of the price | Usually 5% to 10% of your share | Set by your lender; mortgage must cover at least half the price | It is your deposit (up to £4,000 a year saved, plus bonus) |
| Who | First-time buyers | First-time buyers, and some others | First-time buyers, 18+ | Open at 18 to 39 |
| Income cap | Yes, figure due at the Budget | £80,000 (£90,000 in London) | £80,000 (£90,000 in London) | None |
| Price cap | Local caps, due at the Budget | None on GOV.UK's summary | £250,000 after discount (£420,000 in London) | £450,000 |
| Homes | New builds from signed-up developers | New builds and resales, all leasehold | New builds sold as First Homes | Any home in the UK |
| Ongoing costs | Mortgage; loan fees after the interest-free period (not announced) | Mortgage, rent, service charge and ground rent | Mortgage | None |
| When you sell | Repay the loan (rules not announced) | Sell your share | The same % discount passes to the next buyer | Nothing to repay |
| Status, Sept 2026 | Announced; rules 28 Oct 2026 | Available | Available where councils secure them | Open; a replacement is planned |
Shared Ownership
You buy a share of a home, between 10% and 75% of its full market value, and pay rent to the landlord (usually a housing association) on the rest. Deposits are usually 5% to 10% of the share you buy, and you also pay a monthly service charge and ground rent, because every Shared Ownership home is leasehold. You can buy more shares later, which lowers the rent (GOV.UK). Household income must be £80,000 or less (£90,000 in London), and it's open to first-time buyers and some others, such as people who used to own a home but can't afford to buy now (GOV.UK).
Compared with Your First Home: Shared Ownership can need a smaller mortgage, but you pay rent and charges on top. With an equity loan you own the whole home and there's no rent, but the loan follows the home's value.
First Homes
First Homes are new homes sold to first-time buyers at 30% to 50% below market value. You must be 18 or over, have a household income of £80,000 or less (£90,000 in London), and get a mortgage for at least half the price (GOV.UK). The price after the discount is capped at £250,000, or £420,000 in Greater London, and the same percentage discount passes to every future buyer through a restriction on the title (GOV.UK guidance).
Supply depends on where you live. Since the planning framework published on 12 December 2024, there is no national requirement that 25% of affordable homes on new developments are First Homes, though councils can still ask for them (Penningtons Manches Cooper on the December 2024 planning framework). Councils may also set local criteria, such as for key workers or local residents, for the first three months a home is on sale (GOV.UK).
Compared with Your First Home: First Homes gives a permanent discount instead of a loan, so there's nothing to repay, but you sell at a discount too.
Lifetime ISA, and its planned replacement
A Lifetime ISA can be opened between 18 and 39. You can save up to £4,000 a year and the government adds a 25% bonus. It can go towards a first home costing up to £450,000; take the money out for another reason and there's usually a 25% charge (MoneySavingExpert).
The government plans to replace it with a First Time Buyer ISA, which would pay the bonus when you buy and have no withdrawal charge. The consultation ran from 22 June to 18 August 2026; the outcome and launch date haven't been published (GOV.UK). Lifetime ISAs can still be opened for now, and existing holders will be able to use their Lifetime ISA alongside the new account for the same purchase (MoneySavingExpert).
Compared with Your First Home: a Lifetime ISA helps you build the deposit; it isn't a way to buy. Whether Lifetime ISA money can be used with Your First Home hasn't been confirmed.
Help to Buy
England's Help to Buy equity loan closed to new applications on 31 October 2022 (HomeOwners Alliance). See how it compares with the new scheme. Wales runs its own Help to Buy - Wales, with applications due by 31 March 2027 (Help to Buy - Wales (GOV.WALES)).
Related guides
Sources
- the government's announcement (GOV.UK, 26 September 2026)
- Shared Ownership (GOV.UK)
- Shared Ownership: who can apply (GOV.UK)
- First Homes (GOV.UK)
- First Homes planning guidance (GOV.UK)
- Penningtons Manches Cooper on the December 2024 planning framework
- MoneySavingExpert (June 2026)
- First Time Buyer ISA consultation (GOV.UK)
- HomeOwners Alliance guide to Help to Buy 2021-2023
- Help to Buy - Wales (GOV.WALES)