Help to Buy Guide UK 2026 — Schemes, Eligibility & Alternatives

If you have been searching for information about Help to Buy, the first and most important thing to know is this: the Help to Buy Equity Loan scheme in England closed permanently in March 2023. It no longer accepts new applications and cannot be used by anyone buying a home in 2026. This is a common source of confusion for first-time buyers who have read older articles or been advised by friends and family about the scheme.

The good news is that the closure of Help to Buy does not mean first-time buyers in 2026 are without support. Several schemes — some newer, some long-established — remain available and can make a significant difference to your ability to get on the property ladder. This guide covers every current option, explains how each works, who qualifies, and helps you understand which might be right for your situation. Use our affordability calculator and mortgage calculator alongside this guide to model what you could afford under each scheme.

Important: The Help to Buy Equity Loan scheme closed to new applications in October 2022 and all loans completed by March 2023. It is not available in 2026. Anyone stating that Help to Buy is still available for new purchases is referring to different or out-of-date information.

What Was Help to Buy? A Brief History

The Help to Buy programme was launched by the UK government in 2013 to stimulate the housing market and help more people buy homes. It encompassed several different products over its lifetime:

  • Help to Buy: Equity Loan (England): Available from 2013 to 2023. Provided a government equity loan of up to 20% of the new-build purchase price (40% in London) on top of a 5% deposit, with the remaining amount funded by a mortgage. The equity loan was interest-free for five years. The scheme was restricted to first-time buyers from 2021 onwards and closed permanently to new applications in October 2022, with all loans completing by March 2023.
  • Help to Buy: ISA: A savings account that offered a 25% government bonus on savings for first-time buyers. Closed to new savers in November 2019. Existing account holders can continue saving until November 2029 and claim the bonus until November 2030.
  • Help to Buy: Mortgage Guarantee: A government guarantee enabling lenders to offer 95% LTV mortgages on properties up to £600,000. The scheme ran in two phases. While the formal scheme has ended, commercial 95% LTV products remain available from mainstream lenders.
  • Help to Buy: Shared Ownership: Allowed buyers to purchase a share of a property and pay rent on the remainder. This scheme has evolved and continues to operate under the Affordable Homes Programme.

With the Equity Loan — by far the most widely used of these products — now firmly closed, the landscape for first-time buyer support in 2026 is different but by no means absent. The following sections cover every scheme currently available.

Schemes Currently Available to First-Time Buyers in 2026

1. Shared Ownership

Shared Ownership is arguably the most significant government-backed scheme available to first-time buyers in 2026, particularly for those in high-cost areas where outright purchase is out of reach. Available through housing associations and registered providers in England, it allows eligible buyers to purchase a share of a property — between 10% and 75% of its full market value — and pay a below-market rent on the remaining share owned by the housing association.

You take out a mortgage to fund the share you are purchasing, which substantially reduces the deposit required. If you are buying a 25% share of a property worth £280,000, your share costs £70,000, and a 10% deposit on that share is just £7,000 rather than the £28,000 you would need for a 10% deposit on the full purchase price.

Monthly costs on a Shared Ownership property consist of your mortgage repayment on the share purchased, rent on the unowned portion charged at a subsidised rate (typically around 2.75% per year of the unsold equity), and a service charge as Shared Ownership properties are always leasehold. The combined cost can sometimes exceed the cost of renting privately, so model the numbers carefully before committing. Use our mortgage calculator to estimate the mortgage portion of your monthly costs.

Over time, you can increase your ownership share through a process called staircasing — purchasing additional increments at the current market value. Once you reach 100%, you own the property outright and no longer pay rent to the housing association.

Advantages

  • Much lower deposit required
  • Get onto the property ladder sooner
  • Monthly costs can be lower than renting in some areas
  • Can increase ownership share over time
  • Available in high-demand areas

Disadvantages

  • Always leasehold — service charges apply
  • Rent plus mortgage may exceed outright mortgage costs
  • Staircasing incurs legal and valuation costs each time
  • Restrictions on subletting and alterations
  • Resale can be more complex than open market

Eligibility: Household income must not exceed £80,000 per year (£90,000 per year in London). You must be a first-time buyer, a previous homeowner who cannot currently afford to buy, or an existing Shared Ownership holder looking to move. You must not currently own another home.

2. First Homes Scheme

The First Homes Scheme is an England-only initiative that offers new-build homes at a discount of between 30% and 50% off full market value. The discount is locked into the property title permanently — when you eventually sell, the property must be sold at the same percentage discount to another eligible buyer, meaning the benefit remains within the community rather than being realised as profit by the first buyer.

For example, if a new-build property has a full market value of £300,000 and is designated a First Home with a 30% discount, you purchase it for £210,000. Your deposit and mortgage are based on £210,000, not the full market price, making the property far more accessible. When you sell, the property must be sold at 30% off the then-prevailing market value to another eligible First Homes buyer.

The scheme is primarily aimed at first-time buyers and key workers including NHS staff, teachers, police officers, and other essential workers as defined by local authorities. Local councils can set their own eligibility criteria beyond the national baseline, including income caps and local connection requirements, so availability and terms vary significantly by area.

Advantages

  • 30-50% instant discount on purchase price
  • Smaller deposit needed based on discounted price
  • Lower mortgage and monthly repayments
  • Available to key workers
  • Standard mortgage product, not an equity loan

Disadvantages

  • Limited supply of available properties
  • Discount must be preserved and passed on at resale
  • New-build only in most cases
  • Local eligibility criteria vary by council
  • Fewer lenders offer First Homes compatible mortgages

Eligibility: Must be a first-time buyer. Household income must not exceed £80,000 per year nationally (£90,000 in London). Local authorities may set lower income caps or add local connection requirements. The property must be your principal residence. Use our stamp duty calculator to see what SDLT applies at the discounted purchase price.

3. Mortgage Guarantee Scheme and 95% LTV Mortgages

The government's Mortgage Guarantee Scheme ran until June 2025, providing a government-backed guarantee to lenders offering 95% LTV mortgages on properties up to £600,000. This encouraged more mainstream lenders to offer 5% deposit mortgages. The formal scheme has now ended, but the market for 95% LTV mortgages has matured and a number of mainstream lenders continue to offer these products commercially.

In 2026, buyers with a 5% deposit can access 95% LTV mortgages from lenders including Halifax, Nationwide, Barclays, HSBC, and others, though product availability and eligibility criteria vary. These mortgages carry higher interest rates than lower LTV products, and you will need to meet standard affordability and credit requirements.

A 5% deposit on a property at around £285,000 is just £14,250 — a far more achievable savings target for many buyers than £28,500 for a 10% deposit. However, the higher interest rate on a 95% LTV mortgage means greater monthly repayments and more total interest paid over the term. Use our mortgage calculator to compare the monthly cost of 95% versus 90% or 85% LTV mortgages to decide whether saving longer for a larger deposit is worthwhile for your specific situation.

4. Own Your Home Portal

Own Your Home is the UK government's official portal that brings together information about all government-backed homeownership schemes in one place. It allows prospective buyers to filter available schemes by their circumstances, income, and area, and find properties and registered providers participating in each scheme. While not a scheme in itself, it is the definitive starting point for understanding which government support you may qualify for and finding available Shared Ownership and First Homes properties in your target area.

Lifetime ISA (LISA) — The Most Powerful First-Time Buyer Savings Tool

The Lifetime ISA remains one of the most valuable tools available to first-time buyers in 2026, and it is significantly underused. Introduced in 2017, the LISA allows UK residents aged 18 to 39 to save up to £4,000 per year, with the government adding a 25% bonus — worth up to £1,000 per year — on top of everything saved. Both the savings and the bonus are entirely tax-free.

If you save the maximum £4,000 per year for five years, you will have £20,000 of your own money plus £5,000 in government bonuses, plus any interest or investment growth. For two first-time buyers purchasing together, both operating a LISA, the combined bonus potential is £2,000 per year or £10,000 over five years — a meaningful contribution to a house deposit.

Key LISA Rules for Property Purchase

  • Age: You must be aged 18 to 39 to open a LISA. You can continue contributing until age 50.
  • Property price cap: The property must cost £450,000 or less. You cannot use a LISA to buy a property above this price.
  • First-time buyer only: The LISA can only be used for a first residential property purchase. It cannot be used by anyone who already owns or has previously owned a home.
  • Minimum holding period: You must have held the LISA for at least 12 months before using it to buy a property. Open your account early, even if you cannot contribute the maximum immediately.
  • Mortgage required: The property must be purchased with a mortgage — cash purchases are not eligible.
  • LISA types: Cash LISAs offer fixed or variable interest rates. Stocks and shares LISAs invest in the market, offering potential for higher growth over longer timescales but with the risk that the value can fall as well as rise.
Withdrawal penalty warning: If you withdraw money from a LISA for any purpose other than buying your first home or reaching age 60, you pay a 25% government withdrawal charge applied to the full withdrawal amount including the bonus. This effectively penalises your own contributions as well as recovering the bonus. Only use a LISA for its intended purposes.

The LISA replaced the Help to Buy ISA for new savers. If you have an existing Help to Buy ISA from before November 2019, you can continue contributing and claim the bonus on purchase, but you cannot open a new one. You can hold both a Help to Buy ISA and a LISA simultaneously, but you can only use the government bonus from one of them towards a property purchase.

Right to Buy — Council Tenants

Right to Buy allows secure tenants of local authority (council) properties in England to purchase their home at a significant discount to market value. The discount increases with the length of your tenancy, up to a maximum of 70% of the property's value or a cash maximum (currently £102,400 in London and £87,200 elsewhere in England — these figures are periodically reviewed). To qualify, you must have been a public sector tenant for at least three years in total, which does not need to be continuous or with the same landlord.

The property must be your principal home and must be self-contained. Right to Buy mortgages are available from mainstream lenders, with some accepting the Right to Buy discount as part or all of the required deposit. If you sell the property within five years of purchase, you must repay some or all of the discount on a sliding scale. Right to Buy does not apply to housing association properties, which instead have a Right to Acquire scheme with smaller discounts, though not all housing associations participate.

Shared Ownership Explained in Depth

Because Shared Ownership is the most widely available alternative to the Help to Buy Equity Loan, it is worth understanding in greater detail before deciding whether it is the right route for you.

How Staircasing Works

Staircasing is the process of buying additional shares in your Shared Ownership property over time. Under current rules, you can staircase in minimum increments of 1% per year, which is a change from the previous 10% minimum for most lenders and makes the process more flexible and accessible. Each staircase transaction requires a new RICS-accredited surveyor valuation to establish the current market value, and you purchase your additional share at that current value — not the price you originally paid. If property values in your area have risen since purchase, the cost of additional shares will be higher accordingly.

There are legal costs and surveyor fees associated with each staircase transaction. For small incremental staircases, these fixed costs as a proportion of the purchase can be significant, so many buyers prefer to save and staircase in larger steps to make each transaction more cost-efficient. When you reach 100% ownership, the leasehold restriction is removed and you hold the property without the shared ownership provisions.

Service Charges in Shared Ownership

All Shared Ownership properties are leasehold and involve a service charge payable to the housing association or management company. Service charges cover management, building insurance, maintenance of common parts, gardening, and contributions to a sinking fund for future major works. They range from a few hundred pounds per year for a simple scheme to several thousand for a development with concierge services and extensive communal facilities.

Before committing to a Shared Ownership property, ask for at least three years of service charge accounts, details of any planned major works, and whether an adequate sinking fund exists. Inadequate sinking funds can result in large unexpected bills, payable by leaseholders as a service charge demand. High or rising service charges affect both affordability and resale value significantly.

Leasehold Considerations in Shared Ownership

Shared Ownership properties are always leasehold, bringing considerations that apply to all leasehold property in England and Wales. Check the remaining lease length — most Shared Ownership leases are 99 or 125 years when granted, but on older resale properties the remaining term may already have decreased. Most mortgage lenders require a minimum of 70 to 85 years remaining at the end of the mortgage term. Extending a lease on a Shared Ownership property requires the housing association's cooperation and involves legal costs. Ground rent provisions on leases granted before June 2022 should be carefully checked by your solicitor before proceeding.

First-Time Buyer Stamp Duty Relief in 2026

First-time buyers in England and Northern Ireland benefit from Stamp Duty Land Tax (SDLT) relief that significantly reduces or eliminates this tax on many property purchases. Understanding the current thresholds is important for accurate budgeting, particularly since these changed in April 2025.

For first-time buyers purchasing in England from April 2025 onwards:

  • Properties up to £300,000: No Stamp Duty payable — the entire purchase falls within the first-time buyer nil rate band.
  • Properties between £300,001 and £500,000: 5% SDLT on the portion above £300,000. On a £350,000 purchase, you pay 5% on £50,000 = £2,500.
  • Properties above £500,000: First-time buyer relief does not apply. Standard SDLT rates apply to the full purchase price from the first pound.

A first-time buyer purchasing a property at around £285,000 pays no Stamp Duty at all — a saving of up to £5,000 compared to the standard residential rate. Use our stamp duty calculator to calculate exactly what you will owe at any specific purchase price, with first-time buyer relief automatically applied. Scotland, Wales, and Northern Ireland have their own land transaction taxes with different rates and first-time buyer provisions.

Good news for first-time buyers: Purchasing at or below £300,000 in England means zero Stamp Duty in 2026. On a £285,000 purchase, this saves you approximately £4,250 compared to a non-first-time buyer — money you can retain for solicitor fees, survey costs, or furnishing your home.

Comparing Your Options: Quick Reference Table

Scheme Who Can Use It Deposit Needed Property Type Status 2026
Help to Buy Equity Loan First-time buyers 5% New-build only CLOSED — not available
Shared Ownership FTBs, income under £80k 5-10% of purchased share New-build, some resale Available
First Homes Scheme FTBs, key workers 5-10% of discounted price New-build mainly Available (limited supply)
95% LTV Mortgage FTBs and home movers 5% of purchase price New-build and existing Available commercially
Lifetime ISA First-time buyers aged 18-39 Top-up savings tool Up to £450,000 Available
Right to Buy Council tenants (3+ years) Discount used as deposit Your council rented home Available (England)
First-Time Buyer SDLT Relief First-time buyers (England) n/a (tax saving) Up to £500,000 Available

Practical Advice: What to Do as a First-Time Buyer in 2026

With Help to Buy gone and a range of alternative schemes in its place, the practical question for most first-time buyers in 2026 is: where do I start? Here is a structured approach to working out your best route onto the property ladder.

Step 1: Open a Lifetime ISA Immediately

If you are aged 18 to 39 and do not already have a Lifetime ISA, open one today — even if you can only contribute a nominal amount initially. The government bonus is calculated and paid monthly. You must hold the LISA for at least 12 months before using it to buy a property, so the sooner you open it, the sooner you can access the bonus. Couples can both hold a LISA simultaneously, generating up to £2,000 per year in combined government bonuses towards their shared purchase.

Step 2: Establish Your Affordability

Use our affordability calculator to understand how much you can borrow based on your income. Then use our mortgage calculator to see what your monthly repayments would be at different property prices and deposit levels. This gives you a clear target for both the purchase price you can afford and the deposit you need to save.

Step 3: Investigate Shared Ownership and First Homes in Your Area

Visit the government's Own Your Home portal to see what Shared Ownership and First Homes properties are available in your target area. In some high-cost areas, Shared Ownership may be the only realistic route onto the property ladder with a modest income and deposit. In areas where prices are lower, saving a 10% deposit for outright purchase on the open market may be achievable relatively quickly and may offer better long-term value than a shared ownership arrangement.

Step 4: Speak to a Whole-of-Market Mortgage Broker

A qualified whole-of-market mortgage broker can assess your specific circumstances, identify which lenders' criteria you meet, and find the best available deal — whether you are buying outright, through Shared Ownership, via the First Homes Scheme, or with a 5% deposit at 95% LTV. Specialist knowledge of first-time buyer schemes is particularly valuable as not all lenders offer products compatible with all schemes, and the broker can match you to the right lender from the outset.

Step 5: Calculate the Total Monthly Cost Carefully

Whichever route you pursue, always calculate the total monthly housing cost — not just the mortgage repayment. For Shared Ownership, add the rent on the unowned share and the service charge to the mortgage cost. For First Homes, check whether the development has an estate management charge. For any leasehold property, confirm the current and recent service charge levels. Compare the total monthly cost against your current rent and your overall monthly budget to ensure the purchase is genuinely affordable on an ongoing basis.

Pre-purchase checklist: Calculate total monthly housing cost including all charges. Check the remaining lease length on any leasehold property. Review at least three years of service charge accounts for leasehold properties. Get independent legal advice on any Shared Ownership or First Homes title restrictions before exchange. Confirm your solicitor has specific experience with the scheme you are using — Shared Ownership conveyancing has distinct complexities that not all conveyancers handle regularly.

For a step-by-step walkthrough of the full property purchase process from saving your deposit to collecting the keys, see our comprehensive first-time buyer guide.

Frequently Asked Questions

Is Help to Buy still available in 2026?

No. The Help to Buy Equity Loan scheme closed permanently in March 2023 and is not available to any new applicants. The Help to Buy ISA also closed to new savers in November 2019. Several replacement schemes are available for first-time buyers in 2026, including Shared Ownership, the First Homes Scheme, the Lifetime ISA, and 95% LTV mortgages from mainstream lenders. This guide covers all of them in detail above.

What replaced the Help to Buy Equity Loan scheme?

There is no single direct replacement. The government shifted to a range of schemes rather than one dominant product. The main alternatives are Shared Ownership (buy a 10-75% share, pay rent on the rest); the First Homes Scheme (30-50% discount on new-build properties for first-time buyers and key workers); 95% LTV mortgages now available commercially from mainstream lenders; and the Lifetime ISA providing a 25% government bonus on savings up to £4,000 per year. The Own Your Home portal consolidates information on all current options in one place.

How does Shared Ownership work?

Shared Ownership lets you buy a share of a property — between 10% and 75% — with a mortgage and pay subsidised rent on the remaining share to a housing association. Your deposit is based only on your purchased share, so a 10% deposit on a 25% share of a £280,000 property is just £7,000. You can increase your ownership over time through staircasing — buying additional shares at the current market value. Eligibility requires a household income under £80,000 (£90,000 in London) and that you do not currently own a home. Use our mortgage calculator to model the repayment on any share size.

What is the Lifetime ISA and how does it help with buying a home?

The Lifetime ISA is a government-backed savings account available to UK residents aged 18-39. You can save up to £4,000 per year, and the government adds a 25% bonus — worth up to £1,000 per year in free money — on top of your savings. All savings and bonuses are tax-free. You can use the LISA savings and bonus towards the purchase of a first home costing up to £450,000, provided you have held the account for at least 12 months. Couples can both hold a LISA simultaneously, generating up to £2,000 per year in combined bonuses. Withdrawing for other purposes before age 60 triggers a 25% government charge that penalises your own contributions as well as recovering the bonus.

Can I still get a 95% mortgage in the UK?

Yes. Several mainstream UK lenders offer 95% LTV mortgages in 2026, allowing purchase with just a 5% deposit. Lenders including Halifax, Nationwide, Barclays, and HSBC offer these products commercially. They carry higher interest rates than lower LTV deals due to greater lender risk. A 5% deposit on a £250,000 property is £12,500. While this gets you on the ladder sooner, saving a 10% deposit would unlock lower rates and save considerably more in interest over the mortgage term. Use our mortgage calculator to compare the monthly cost and total interest of 95% versus 90% LTV to decide whether extra saving time is worthwhile for you.