Popular government schemes for first-time buyers in England
If you’re buying your first home in England, there are several government-backed schemes designed to make getting onto the property ladder more achievable. From boosting your savings with bonus support to reducing the upfront cost of a new-build home or sharing ownership to lower monthly payments, these schemes aim to ease the financial pressure. The most popular options include Shared Ownership, the Lifetime ISA and the First Homes Scheme.
Getting onto the property ladder can feel challenging, especially for first-time buyers facing rising house prices and higher deposit requirements.
To help bridge the gap, the government offers a range of schemes designed to make buying more achievable. From boosting savings to reducing upfront costs or offering shared routes into ownership, these initiatives are designed to open up more affordable ways to buy a home in England.
Shared Ownership
What it is
Shared Ownership is a scheme that lets first-time buyers purchase a share of a property instead of buying it outright. The share is usually between 10% and 75%, depending on affordability and eligibility. The remaining portion is owned by a housing association, and you pay rent on that share.
How it works
Each month, you pay a mortgage on the part you own and rent on the rest. There is often a service charge too, which covers maintenance of communal areas. This split makes it easier to get onto the property ladder with a smaller deposit compared to full ownership.
Increasing your share
Over time, you can increase your ownership through a process called staircasing. This allows you to buy more shares in the property as your financial situation improves. Some buyers eventually own the home outright, while others remain part-owners long term. Learn more about staircasing here.
Who it suits
Shared Ownership is aimed mainly at first-time buyers and those who cannot afford full market prices in their area. Income caps usually apply, and priority is often given to local residents or key workers. It is commonly used in new-build developments.
Things to consider
While it reduces upfront costs, buyers should factor in rent increases and service charges. It is important to look at the full long-term cost, not just the entry point, before committing.
Click here to see if you qualify for Shared Ownership.
Lifetime ISA
What it is
The Lifetime ISA (LISA) is a government-backed savings account designed to help first-time buyers build a deposit. It is available to people aged 18 to 39 and can be used towards buying a first home or retirement.
How it works
You can save up to £4,000 each tax year, and the government adds a 25% bonus. That means a maximum boost of £1,000 per year. Over time, this creates a strong deposit fund for first-time buyers who save consistently.
Using it for a home
The savings, including the government bonus, can be used towards a first home worth up to £450,000. The account must be open for at least 12 months before it can be used for a property purchase. Funds are paid directly to the solicitor during completion.
Account types
There are two versions of the LISA: cash and stocks and shares. Cash LISAs are lower risk and more commonly used for house deposits. Stocks and shares LISAs carry more risk but may offer higher returns over time.
Things to consider
Withdrawals for anything other than a first home or retirement usually incur a penalty, which can reduce your savings. Because of this, it works best when used with a clear long-term plan.
First Home Scheme
What it is
The First Homes Scheme helps first-time buyers purchase new-build homes at a discount of at least 30% compared to market value. In some areas, local councils may increase this discount further.
How it works
Discounted homes are sold with the reduction applied permanently. When the property is sold again, the same discount is passed on to the next eligible buyer. This keeps the home affordable long term.
Who it is for
The scheme is aimed at first-time buyers. With priority often given to local residents and key workers such as nurses, teachers and emergency services staff. Income caps and local eligibility rules usually apply.
Property types
First Homes properties are typically new builds. Meaning modern layouts, energy efficiency and lower maintenance costs. This makes them appealing to buyers who want a ready-to-move-into home without renovation work.
Things to consider
Availability is limited and varies by development and region. Buyers often need to act quickly when homes are released. Despite this, the discount can make a significant difference in affordability for those who qualify.
Disclaimer
newhomesforsale.co.uk is a property portal and not a financial advisor, mortgage broker or mortgage lender. Always seek independent financial advice before making significant decisions about your money, mortgages or purchasing a property.
All information included in our articles is accurate to the best of our knowledge at the time of publication. However, any references to dates, prices and availability are subject to change without notice.
Please note that stock images used on this website are licensed from Canva.com.
Publish date 24th June, 2026
Reading time: 4 minutes
Written by Heather Bowles
