First-time buyer schemes: what's still available?

It has been nearly two years since the Help to Buy equity loan scheme closed to new applicants in England. While this initiative helped thousands of aspiring homeowners onto the property ladder, its absence has left many first time buyers wondering what support remains available as we go into 2026.

The market has shifted, yet the path to homeownership remains open. While the singular government loan of the past is gone, it has been replaced by a diverse mix of targeted support. From permanent mortgage guarantees and tax-efficient savings accounts to specific contributions from developers, there are still meaningful ways to bridge the gap between your savings and your first home.

This guide explores the options currently defining the market. We will examine how affordability is being addressed, the solutions for overcoming deposit challenges, and the specific incentives available for new build residences.

Key insights

• Government-backed schemes still exist: While the flagship equity loan has ended in England, the Mortgage Guarantee Scheme continues to support buyers with smaller deposits by encouraging lenders to offer 95% mortgages.
• Developer incentives are filling the gap: Housebuilders are increasingly offering their own private support packages, such as deposit contributions or mortgage rate subsidies, to replace national programmes.
• Lifetime ISAs remain essential (with caveats): For those targeting a home under £450,000, the Lifetime ISA (LISA) is still the most powerful tool available, offering a guaranteed 25% government bonus. However, with the price cap frozen and a government consultation to replace the scheme confirmed in the Autumn Budget 2025, it is now best viewed as a short-term tactical tool rather than a long-term safe haven.
• Regional variances matter: The landscape differs significantly across the UK. While England has seen schemes ending, schemes like Help to Buy Wales continue to operate with different deadlines and criteria.
• Eligibility checks are critical: Unlike the universal nature of previous schemes, many current options (like First Homes) have strict local connection or income criteria that you must verify early in your search.

What happened to Help to Buy?

For a decade, the Help to Buy equity loan scheme was the primary route to homeownership for many first-time buyers. It allowed buyers to purchase a new home with just a 5% deposit, while the government provided an equity loan of up to 20% (or 40% in London) interest-free for five years.

The scheme officially closed to new applicants in England on 31 October 2022, with all purchases completed by 31 March 2023. The government’s decision to end the initiative marked a return to a more traditional market, removing the state subsidy that had supported a significant portion of new build sales.

However, the picture is different elsewhere in the UK. The Welsh government, for instance, extended its own version of Help to Buy until 2025 (and subsequently to 2026), continuing to support buyers of energy-efficient homes. In Scotland, the focus has shifted towards shared equity models like the LIFT (Low Cost Initiative for First Time Buyers) scheme.

The closure in England left a void that the market is still adjusting to. Without the equity loan boosting their budget, buyers have had to reassess what they can afford. This has led to a renewed focus on property value, prompting many to weigh up the premiums often attached to modern developments. To understand the pros and cons in the current market, read our guide: Are new builds worth it?

Government support for first-time buyers in 2026

While the era of broad, open-access equity loans has passed, the government has pivoted towards more targeted support. The focus in 2026 is on securing high loan-to-value mortgages and providing deep discounts for local buyers.

The First Homes scheme

For many, this is the most significant replacement for Help to Buy. The First Homes scheme is designed to help local first-time buyers and key workers stay in their communities by offering new build homes at a discount of at least 30% compared to the market price. In some areas, councils can increase this discount to 50%.

Crucially, this discount is attached to the property’s deed in perpetuity. When you eventually sell, you must pass the same percentage discount on to the next eligible first-time buyer.

Eligibility and limits: To qualify, you must be a first-time buyer earning less than £80,000 a year (or £90,000 in London). The property price, after the discount is applied, cannot exceed £250,000 (£420,000 in London). Be aware that local authorities often add their own criteria, such as prioritising key workers or those with a pre-existing local connection.

• Explore options: New homes for sale

The Mortgage Guarantee Scheme

Accessing a mortgage with a small deposit remains one of the biggest hurdles for buyers. The Mortgage Guarantee Scheme addresses this by encouraging lenders to offer 95% loan-to-value mortgages. The government provides a financial guarantee to the lender, covering a portion of their losses if a borrower defaults.

This reduces the risk for banks, meaning you can secure a mortgage with just a 5% deposit. Following the transition to the "Freedom to Buy" initiative, this support is now a permanent feature of the market, offering long-term certainty for buyers saving their first deposit.

• Get expert advice: Mortgage and finance services

Lifetime ISA (LISA)

The Lifetime ISA remains the most efficient way to build your deposit, provided your home costs under £450,000. If you are aged 18-39, you can save up to £4,000 each tax year and receive a 25% government bonus. This means for every £4,000 you save, the government adds £1,000, free money to use towards your first home.

However, following the Autumn Budget 2025, the landscape has changed. With the £450,000 price cap frozen and a consultation to replace the scheme set for early 2026, the product's long-term future is uncertain. Crucially, if you withdraw cash for a non-qualifying reason (including buying a home over the cap), a 25% penalty applies, meaning you would lose approximately 6% of your own savings

Unlike a loan, this is a savings incentive. However, you must have the account open for at least 12 months before you can use it to buy a home, so opening one early is a wise strategic move even if you start with a small amount.

Help to Build: Equity Loan

Designed for those building their own home rather than buying an existing one, the Help to Build equity loan operated similarly to the original Help to Buy scheme. It allowed self-builders to secure a mortgage with a 5% deposit.

Status update: It is important to note that this scheme closed to new applications in March 2025. While existing applications are still progressing, this specific route is no longer open to new entrants. If self-building is your goal, you will now need to look towards specialist self-build mortgages rather than government equity loans.

Developer and local authority incentives

As government-led initiatives have scaled back, property developers have responded by introducing their own suite of incentives. Housebuilders understand that affordability remains a primary barrier, and many have pivoted from relying on state subsidies to offering direct financial contributions.

These private incentives are often more flexible than national schemes, designed to smooth specific friction points in the buying journey, whether that is the deposit, the monthly mortgage payment, or the upfront costs of moving.

New build support packages

To secure sales in a competitive market, developers are increasingly offering "soft" incentives. It is now common to find offers where the developer pays your legal fees, covers your removal costs, or provides a "deposit contribution", effectively a gifted sum that boosts your equity from day one.

Beyond these cash incentives, there are structured schemes designed to make the numbers work:

• Own New Rate Reducer: This scheme uses the developer’s incentive budget to subsidise your mortgage interest. Instead of a cash discount, the money goes to the lender, reducing your monthly payments significantly for the first two to five years.
• Deposit Unlock: An industry-backed alternative to government guarantees, this allows you to buy a new build home from participating developers with just a 5% deposit.
• Part Exchange: While primarily for existing homeowners, this is worth noting if you are buying with a partner who has a property to sell. The developer buys the existing home, removing estate agent fees and the risk of a chain collapse.
• Assisted Move: Similar to Part Exchange, the developer helps sell an existing property, often paying the estate agent fees, to ensure you can proceed with your new purchase.

Expert tip: Incentives vary not just by developer, but by individual development. It is crucial to compare the total value of the package rather than just the headline price.

• Read more: Buying a new build full guide

Local authority assistance

While less publicised, some local councils operate their own shared equity or small deposit schemes. These are often targeted at specific demographics, such as key workers or residents who have lived in the borough for several years.

These funds are typically limited and operate on a first-come, first-served basis. It is advisable to check the housing section of your local council’s website or speak to a local agent who will know which authorities are currently active.

Which first-time buyer scheme is best for you?

With the landscape now fragmented into different types of support, there is no longer a single solution that works for everyone. The right choice depends entirely on your deposit size, your earnings, and where you intend to live.

The table below provides a quick comparison to help you identify which route aligns best with your circumstances.

While these summaries offer a starting point, the nuances of property finance can be complex. We always recommend speaking to our qualified mortgage partners at Capital Finance who can review your full financial picture.

• Find a solution: Our mortgage and finance services

Final thoughts

The property market has evolved significantly since the days of the ubiquitous Help to Buy equity loan. While the government has stepped back from direct lending in England, the support network for first-time buyers has not disappeared. It has simply diversified.

In 2026, the path to homeownership is defined by a combination of permanent mortgage guarantees, smart savings vehicles like the Lifetime ISA, and a competitive developer market eager to offer financial incentives. The key to success is no longer just about applying for a single national scheme but understanding which specific combination of local and private support works for your unique financial situation.

Whether you are looking for a new build apartment or a period home, we are here to help you navigate these options with confidence.

Start your journey: Browse our new build homes.