All Home Buying Assistance Schemes in England in 2026

Due to rising property prices, it is becoming increasingly difficult for many people to buy a house in England. In order to enable some residents of this country to obtain a mortgage, the government is introducing new solutions that help the cost of buying a home in various ways. In this article, we will describe all the assistance programmes available to residents of England to make it easier for them to buy property.

First Time Buyer (FTB)

Since several assistance programmes are reserved for individuals with First Time Buyer (FTB) status, we would like to clarify what this means. When describing individual programmes, we will indicate each time whether this status is required.

In the context of mortgages and property in the UK, a First Time Buyer is a person who has never previously owned a share in any property in the UK or anywhere else in the world.

Although FTB status is not a single, official assistance programme, it can be considered as such due to the existence of a set of reliefs and support schemes aimed at this group. Having this status not only allows you to participate in certain assistance programmes, but also offers several other benefits.

First and foremost, first-time buyers are eligible for a tax relief that exempts them from paying Stamp Duty Land Tax (property purchase tax) on properties valued at £300,000 or less. For more expensive homes, a rate of 5% is applied to the portion of the value between £300,000 and a maximum of £500,000. However, if the value of the property exceeds half a million pounds, the relief does not apply and the standard SDLT rates must be used to calculate the tax.

First-time buyers can also take advantage of a Lifetime ISA (LISA) when purchasing a property. This account has one significant advantage — the government contributes 25% of every amount deposited. The annual contribution limit for a LISA is £4,000, which means that those who use the full limit can receive up to £1,000 in additional funds during the year. Money saved using a LISA account can only be used as a deposit for a mortgage by people with FTB status. Otherwise, you have to wait until you reach the age of 60 to withdraw it.

It is also worth remembering that mortgage offers for first-time buyers may often have more favourable interest rates than standard products. This is due to the marketing policy of banks, which are trying to attract new customers for the long term. Combined with tax relief, this gives first-time buyers a real financial advantage.

Assistance programmes in England

Shared Ownership

The first programme we will explain is Shared Ownership, which is the most popular and, at the same time, highly controversial assistance programme in the UK (also available in Wales).

Shared Ownership works on the principle of joint ownership of a property with a housing cooperative or developer. A person who decides to participate buys a share of the property with a mortgage and pays rent on the remainder. At later stages, they can increase their share in the property by purchasing additional shares using a mechanism called ‘staircasing’.

This makes it easier to obtain a mortgage due to the lower affordability requirements.

One of the conditions for qualifying for the Shared Ownership programme is not owning any other property. However, this does not mean that First Time Buyer status is required. If you have owned shares in the past but do not currently own any, you can still take advantage of the programme. Applicants are also subject to a financial assessment to confirm that they are definitely unable to purchase a home outright. Other eligibility requirements for the programme include being at least 18 years of age and declaring that the property purchased through Shared Ownership will be the buyer’s main residence.

Shared Ownership can be a good idea for a quick entry into the housing market, as it allows you to spend less on your own deposit. However, you should be careful, because participation in the programme involves incurring two different costs at the same time: loan instalments and rent, which may increase from year to year. In the past, there have been cases of unfair treatment of tenants, which has sometimes led to financial problems. Therefore, if you want to opt for Shared Ownership, it is a good idea to use the services of an experienced conveyancer who will be able to analyse the contract and assess how secure it is.

When considering Shared Ownership, there is another issue to bear in mind. Namely, the rent paid to the landlord. When assessing your creditworthiness, your bank will take this monthly payment into account, which, paradoxically, may result in the amount you can borrow being relatively low. Given that most of the flats covered by this programme are located in estates with relatively high administrative costs, you may end up with a lower mortgage payment than you expected.

First Homes Scheme

Another programme, this time only for First Time Buyers, is the First Homes Scheme (FHS). Under this scheme, first-time buyers can purchase a property for 50% to 70% of its market value.

Such discounts result from requirements imposed on developers by local councils. When implementing new housing developments, building permits are only issued on condition that a certain number of properties are included in the scheme. As a result, the developer identifies specific properties that are included in the First Homes Scheme.

Once a property has been selected, it is permanently assigned to the scheme. This means that if you manage to buy a house through the First Homes Scheme, when you sell it later, you will also have to take the discount into account and list your property for the same percentage of the market value at which you bought it.

For example, let us assume that you purchased a flat worth £200,000 with a 30% discount, which means that its price was £140,000. After 20 years, its value has increased to £400,000, and you decide to sell. As the property is covered by the FHS scheme, you must apply the same discount, i.e. put it up for sale for £280,000.

To qualify for the scheme, you must:

• Be aged 18 or over;

• Be a first-time buyer;

• Take out a mortgage for at least half of the discounted price when purchasing a property;

• Earn no more than £80,000 gross per annum (or £90,000 if the property is located in London) in the year preceding the year in which you purchase the property. If you want to buy a flat with your partner, this limit applies to both of you.

Please note that if you wish to take out a joint mortgage, your partner must also have FTB status.

Finding a property covered by the First Homes Scheme can be challenging as the scheme is developing relatively slowly. When searching, it is worth not limiting yourself solely to FHS offers, but treating them as an additional opportunity that you can take advantage of if it arises. You can find flats covered by the scheme on websites such as Zoopla and Rightmove or by contacting your local council.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme is an assistance programme that helps people obtain a mortgage with a minimum down payment of as little as 5%. It works in a very simple way — the government provides lenders with a guarantee for the portion of the loan above a certain LTV value (the exact value is not specified and depends on the agreement), which means that if the bank takes over the property, it is automatically guaranteed to cover part of the losses. This makes the lender more willing to grant a risky mortgage or offer more favourable terms.

Participation in the Mortgage Guarantee Scheme does not require any specific action, as it is often automatically included in the mortgage offer. However, it is worth remembering that some lenders do not participate in the scheme and still offer high LTV mortgages. If you want to find the best possible deal, use a whole-of-market broker and do not limit yourself to offers with the scheme attached.

Right to Buy and Right to Acquire

The Right to Buy and Right to Acquire schemes are very similar, as both allow tenants to purchase their current flat at a reduced price. The main difference is that the RTB scheme applies to social housing, while the RTA scheme applies to properties owned by housing associations.

Tenants who have rented a given flat for a specified minimum period of time are eligible to participate. In the case of social housing, this is usually 3 years, although it may be longer in some regions, and in the case of Right to Acquire, it is always 3 years.

After this period, they can apply to purchase the flat. A discount is then calculated, the amount of which depends on the length of their tenancy, the location and the type of flat. These discounts can be as high as 70% of the property value, so they can be very attractive.

It is important to note that if the flat is sold quickly, the council or housing association may demand a refund of part of the discount.

Summary

There are several assistance programmes in England that facilitate the purchase of property in various ways. These include the First Homes Scheme, Shared Ownership, Mortgage Guarantee Scheme, Right to Buy and Right to Acquire. It is worth remembering that the cost of purchasing a property is significantly affected by First Time Buyer status, which brings tax relief and lower interest rates on mortgages.

As a mortgage broker, we can help you purchase property under any of these assistance programmes. If you are planning to buy a house or flat in the UK, please contact us – we can help!