Top Help to Buy Alternatives 2026: Shared Ownership & More

The Help to Buy equity loan scheme closed to new applications in October 2022, but the need for first-time buyer support has only grown. According to the Office for National Statistics (ONS), the average UK house price reached £290,000 in late 2025 — meaning a typical first-time buyer needs a deposit of £14,500 to £29,000 even at 5–10%. MoneyHelper data shows that Shared Ownership completions rose 18% in the year following Help to Buy's closure, as buyers turned to alternative government-backed routes onto the property ladder.

"With Help to Buy gone, first-time buyers need to be strategic about which scheme fits their circumstances. A Lifetime ISA gives you a guaranteed 25% return on up to £4,000 per year of savings — that is unbeatable if you have a few years to save. For those who need to buy sooner, Shared Ownership with a 5% deposit on your share can get you into a property with as little as £5,000–£7,000 upfront."

— Sarah Mitchell, Chartered Financial Planner

Understanding the End of Help to Buy

The Help to Buy scheme was introduced in 2013 to assist first-time buyers in purchasing new-build homes with a smaller deposit. However, with its conclusion in October 2022, many are left wondering what options remain to support homeownership.

The UK government has rolled out several alternatives aimed at helping buyers with lower incomes or those who struggle to save for a deposit. These alternatives are designed to make homeownership more accessible, especially in a challenging housing market where property prices continue to rise.

Shared Ownership: How It Works

Shared Ownership is a government-backed scheme that allows you to buy a share of a property and pay rent on the remaining share. This can be an excellent option for first-time buyers who may not have enough savings for a full deposit.

How Shared Ownership Works

1. Buying a Share: You can purchase from as little as 10% of a property, depending on what you can afford.
2. Renting the Remaining Share: You will pay rent on the portion you do not own, typically set at around 2.75% of the property's value.
3. Staircasing: You have the option to buy additional shares in the property over time, which is known as staircasing. This allows you to gradually increase your ownership.
4. Eligibility: Generally, you must meet certain criteria, such as being a first-time buyer or a previous homeowner who cannot afford to buy a home in the current market.

Pros and Cons of Shared Ownership

Pros	Cons
Lower deposit requirements (as low as 5%)	You do not own the entire property initially
Ability to staircase and increase ownership	Rent payments can increase over time
Access to new-build homes	Restrictions on modifications and subletting
Government-backed scheme	Limited availability in certain areas

Shared Ownership can be a viable option for many, but it's essential to consider the long-term implications of renting a portion of your home.

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Lifetime ISA: Saving for Your First Home

The Lifetime ISA (LISA) is a savings account designed to help first-time buyers save for a home. It offers a government bonus to encourage saving, making it an attractive option for many.

How the Lifetime ISA Works

1. Eligibility: You must be aged between 18 and 39 to open a LISA.
2. Contributions: You can save up to £4,000 each tax year, and the government adds a 25% bonus on your contributions. This means if you save the maximum amount, you will receive a bonus of £1,000 per year.
3. Withdrawal for Property Purchase: You can use the funds to purchase your first home, provided the property price does not exceed £450,000 in England (different limits apply in Scotland and Wales).
4. Penalties for Early Withdrawal: If you withdraw funds for any reason other than buying your first home or retirement (after age 60), you will incur a penalty of 25% on your savings.

Pros and Cons of the Lifetime ISA

Pros	Cons
25% government bonus on savings	Penalties for early withdrawal
Can be used for retirement after age 60	Limited to first-time buyers
Flexible savings with no restrictions	Annual contribution limit of £4,000

The Lifetime ISA is an excellent way to boost your savings for a home, but be mindful of the penalties associated with early withdrawal.

First Homes Scheme: Making Homeownership Affordable

The First Homes scheme is a relatively new initiative aimed at helping first-time buyers purchase homes at a discounted price. This scheme is designed to make homeownership more affordable, especially in areas where property prices are high.

How the First Homes Scheme Works

1. Discounted Prices: Homes are sold at a discount of at least 30% compared to the market price. The exact discount may vary based on local housing markets.
2. Eligibility Criteria: Buyers must meet specific criteria, including being a first-time buyer and having a household income of less than £80,000 (£90,000 in London).
3. Local Connection: Some properties may be prioritised for buyers with a local connection to the area.
4. Resale Restrictions: When you sell your First Home, the discount remains in place for future buyers, ensuring ongoing affordability.

Pros and Cons of the First Homes Scheme

Pros	Cons
Significant discounts on property prices	Limited availability in certain areas
Helps maintain long-term affordability	Resale restrictions may limit profits
Designed specifically for first-time buyers	Eligibility criteria can be restrictive

The First Homes scheme provides an excellent opportunity for first-time buyers to enter the property market at a more affordable price point.

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Other Schemes to Consider

In addition to the options mentioned above, several other schemes can assist with homeownership in the UK.

Right to Buy

The Right to Buy scheme allows eligible council tenants to purchase their homes at a discounted price. Key points include:

• Discounts: Discounts can be substantial, depending on how long you've lived in the property. For example, you could receive a discount of up to £87,200 (£116,200 in London).
• Eligibility: You must have been a council tenant for at least three years and meet other criteria.

Forces Help to Buy

This scheme is specifically designed for members of the armed forces, allowing them to purchase a home with a government-backed loan. Key features include:

• Loan Amount: Eligible service members can borrow up to 50% of their salary to help with a deposit.
• Repayment Terms: The loan is interest-free for the first five years, making it an attractive option for those in the military.

Mortgage Guarantee Scheme

Introduced in 2021, the Mortgage Guarantee Scheme aims to help first-time buyers secure a mortgage with a deposit as low as 5%. Key features include:

• Lender Participation: Participating lenders offer mortgages backed by the government, reducing the risk for them.
• Wide Eligibility: This scheme is open to both first-time buyers and existing homeowners looking to move.

Comparing Help to Buy Alternatives

To better understand these alternatives, here’s a comparison table that highlights key features of Shared Ownership, Lifetime ISA, First Homes scheme, Right to Buy, Forces Help to Buy, and the Mortgage Guarantee scheme.

Scheme	Deposit Required	Government Support	Eligibility Criteria	Key Benefit
Shared Ownership	5% - 25%	Rent on unowned share	First-time buyers, income limits	Gradual ownership through staircasing
Lifetime ISA	Up to £4,000/year	25% bonus	Aged 18-39, first-time buyers	Government bonus on savings
First Homes Scheme	5%	30% discount	First-time buyers, local connection	Significant price discount
Right to Buy	35% - 60%	Discount on market value	Council tenants, minimum 3 years tenancy	Substantial discounts on purchase
Forces Help to Buy	5%	Up to 50% of salary	Armed forces members	Interest-free loan for first five years
Mortgage Guarantee Scheme	5%	Government-backed mortgages	First-time buyers and movers	Lower deposit requirements

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Key Takeaways

• The Lifetime ISA gives a guaranteed 25% government bonus on up to £4,000/year of savings — the best return available if you have 1–3 years before buying
• Shared Ownership lets you buy from just 10% of a property with a 5% deposit on your share, meaning you could get on the ladder with as little as £5,000–£7,000
• First Homes offer at least a 30% discount on market price, with the discount passed on to future buyers — but availability is limited to specific developments
• The Mortgage Guarantee Scheme reopened 95% LTV lending — you can buy with just a 5% deposit from participating lenders
• Right to Buy discounts for council tenants can exceed £87,200 (£116,200 in London), making it one of the most valuable routes to ownership for eligible tenants
• Withdrawing Lifetime ISA savings for non-property purposes incurs a 25% penalty — only open one if you are confident you will use it for a first home or retirement

Conclusion: Your Next Steps

1. Check your eligibility for each scheme — Shared Ownership and First Homes have household income caps, the Lifetime ISA requires you to be under 40 to open, and Right to Buy needs 3+ years as a council tenant
2. Open a Lifetime ISA immediately if eligible — the 25% bonus is applied annually, so starting sooner means more free money towards your deposit
3. Use MoneyHelper for free, impartial guidance on all government homebuying schemes and to check what is available in your area
4. Speak to a mortgage broker who specialises in first-time buyers — they can identify which scheme and lender combination gives you the best deal
5. Compare UK mortgage rates and lenders to find the most competitive deal alongside whichever scheme you choose