Home-buying schemes in Wales, Scotland & NI (2026)

Although all of these countries form part of the United Kingdom, the rules governing the purchase of property often differ between them. Due to differing regulations, property prices and the needs of residents, each of these nations offers various support schemes designed to help those wishing to buy their own home. In this article, we will discuss the main support schemes currently in place in Wales, Scotland and Northern Ireland. However, we will omit England, which has several schemes of its own that we cover in a separate article.

First-time buyers (FTB) in different parts of the UK

For tax reliefs and most schemes, a first-time buyer (FTB) is someone who has never owned a home, or a share of one, in the UK or anywhere else in the world. In England, first-time buyer status brings first-time buyer relief from Stamp Duty Land Tax, as well as opportunities to participate in schemes and discounts. This status also exists in each of the other countries of the UK, but it does not always have practical application:

Property purchase tax

In Northern Ireland, exactly the same property purchase tax applies as in England, namely Stamp Duty Land Tax (SDLT). First-time buyers do not have to pay any tax on properties up to £300,000. They pay 5% on the portion of the price from £300,001 to £500,000, and the relief is not available on properties costing more than £500,000. Given the average property price in Northern Ireland, which stood at £202,487 in April–June 2026 (Northern Ireland House Price Index, Q2 2026), many first-time buyers in Northern Ireland will pay no SDLT.

Scotland is another country where, as in England and Northern Ireland, First-Time Buyer status entitles the buyer to a tax relief. The Land and Buildings Transaction Tax (LBTT), the Scottish equivalent of the English Stamp Duty, is 0% for first-time buyers up to £175,000. Above £175,000, first-time buyers pay LBTT at the standard rates on the portion above £175,000, so the relief is worth up to £600.

In Wales, there is no separate tax relief for first-time buyers, and they must pay Land Transaction Tax in the same way as other residents. Under the main rates, you only start paying it on the portion of the property value above £225,000, where the lowest rate of 6% applies. The average property price in Wales was £215,000 in July 2026 (UK House Price Index), so many homes in Wales fall at or near the 0% band.

Lifetime ISA

It is also worth remembering that the Lifetime Individual Savings Account (Lifetime ISA, LISA) is available throughout the UK. This is particularly important for first-time buyers, as only they can use funds from this account to purchase a property. If you are not a first-time buyer, you can withdraw the money without a charge once you are 60; withdrawing it earlier for other reasons usually means paying a 25% charge.

You must open the account (make your first payment) before you turn 40. To use it for a first home, the property must cost £450,000 or less and be bought with a mortgage at least 12 months after your first payment.

So what makes this account special? Its biggest advantage is the government bonus – extra money that the government adds to your savings from its own funds. Every time you make a deposit into your LISA account, you will receive an additional 25% of the deposit amount. For example, if you deposit £400, the bonus will be £100. The maximum annual deposit limit is £4,000, so you can receive up to £1,000 in bonuses from the government each year.

Mortgage products for first-time buyers

In addition, as in England, some lenders offer products aimed at first-time buyers; the rate you are offered depends on your deposit, income and credit history.

Support schemes in Northern Ireland

Co-Ownership (shared ownership) in Northern Ireland

In Northern Ireland, there are schemes that are equivalent to Shared Ownership in England. Taking advantage of such a support scheme involves purchasing a share of the property (from 50% up to 90%) and paying rent on the remainder, which is financed by the scheme provider.

For example, let’s say you buy a 60% share in the property, and the scheme provider pays for the remaining 40%. Of course, this does not mean that someone will be moving in with you — the house is entirely yours in the sense that you will be its sole occupier. Under the shared ownership agreement, however, you will have two fixed expenses. These are:

• Mortgage repayments;

• Rent paid to the scheme provider, who paid for the remainder of the property.

In Northern Ireland, there are two main shared ownership schemes:

• Co-Ownership – a registered housing association that runs Northern Ireland’s main shared ownership scheme. Since 1978, it has helped more than 35,000 people buy a home, and over 11,000 people currently own their home through Co-Ownership;

• FairShare – a shared ownership scheme offered by housing associations (Apex, Choice and Clanmil), mainly for new-build homes. The way the scheme works is very similar.

These schemes assume from the outset that you will finance your share with a mortgage, as one of the eligibility criteria for such a scheme is confirmation that your financial situation does not allow you to purchase 100% of the property. For Co-Ownership, the property value limit is £215,000 for existing homes and £230,000 for new builds (nidirect, September 2026).

Another condition is that you must not own any other properties, either in the UK or abroad. However, this does not mean that the scheme is aimed exclusively at first-time buyers — even if you have previously owned another property, you can still benefit from it.

After purchasing the property under the scheme, you can gradually pay off the remaining share. This mechanism is known as staircasing and involves buying further shares from the scheme provider, which increases your share and reduces the rent you pay.

Co-Own for Over 55s

The Co-ownership organisation offers an additional co-ownership scheme designed for people aged 55 and over. The aim of this scheme is to help middle-aged and older people purchase their next home, one that is better suited to their needs.

For example, when an older person is left alone in a large house that they no longer have the strength to look after, they can take advantage of the Co-Own for Over 55s scheme and move to a smaller home that better suits their needs.

In this case, you may not need a mortgage for seniors if your equity or savings cover your share – for example, the proceeds from the sale of your previous home. As with any other Shared Ownership scheme, rent must be paid on the remaining portion of the property.

House Sales Scheme

The House Sales Scheme is a programme that enables eligible Housing Executive secure tenants to buy their home at a discount. The size of this discount depends on the length of the tenancy:

You need at least 5 years’ tenancy to qualify, and after 5 years the discount amounts to 20% of the property’s market value. After that, the discount increases by 2% for each additional year of tenancy, up to a maximum of 60% or £24,000, whichever is lower.

The terms of the scheme include several circumstances in which you cannot benefit from it. You cannot buy under the scheme if your home is sheltered housing, part of a group housing scheme, or a single-storey or ground-floor property (other than a flat) with no more than two bedrooms. You are also not eligible if you are a squatter or if the Housing Executive is taking, or intends to take, legal possession of the property.

The House Sales Scheme is the equivalent of the English Right to Buy scheme.

Housing schemes in Wales

Shared Ownership – Wales

In Wales, Shared Ownership operates on very similar principles to those in England. As a shared ownership scheme, it allows you to purchase a share of a property and pay rent on the other share, which belongs to a Housing Association. The deposit is based on the value of the share you buy.

For example, suppose you want to live in a property worth £100,000. You finance 60% of the property with a mortgage, and pay monthly rent on the remaining 40%.

Whilst living in the property, you can gradually buy out the remaining shares through a mechanism known as staircasing.

To be eligible for the scheme, you must:

• buy a share of between 25% and 75% of the property, usually with a mortgage;

• have a household income of no more than £60,000 per year;

• demonstrate that you cannot afford to buy a suitable home outright;

• not own any other property;

• be financially stable enough to pay both the mortgage repayment and the rent.

You must also meet one of the following:

• be a First-Time Buyer;

• be forming a new household (for example, following a divorce);

• be relocating for work to an area where property prices do not allow you to buy a home suitable for your family’s size.

Help to Buy – Wales

Help to Buy is a support scheme available in Wales, which operates on the basis of capital loans from the government. The way it works is very simple — when you buy a home, the government finances up to 20% of the purchase price. This allows you to buy a property with a smaller mortgage and a smaller deposit. Applications must be submitted by 31 March 2027 (check gov.wales for the latest position).

No interest is charged for the first five years, although a monthly management fee applies. Under the Welsh Government’s Phase 3 Extension buyer’s guide (September 2024), interest starts in year six at 1.75% a year and the rate then increases annually in line with the Consumer Prices Index (CPI) plus 2%. Earlier Help to Buy – Wales agreements may instead use Retail Prices Index (RPI) plus 1%, so check the terms of your own loan agreement rather than assuming that every phase uses the same index.

You must repay the equity loan within 25 years or when you sell. You repay the same percentage of the property’s value at that time, so the amount can be more than you borrowed. You can repay early, which stops future interest, but you repay a share of the property’s value at the time, which may be higher than the original loan.

You can use the scheme if:

• you are able to make a 5% deposit;

• you are buying a newly built home costing no more than £300,000;

• you are financing the purchase with a mortgage.

In addition to Help to Buy, there is also a very similar scheme in Wales called Homebuy, which provides an equity loan of 30% of the purchase price, with you funding the other 70% through a mortgage and/or savings. It is not available in all areas, and local eligibility criteria apply.

Housing schemes in Scotland

Shared ownership in Scotland

Scotland also has a shared ownership scheme, which differs from others in a few key ways. Firstly, the main requirement is that you cannot afford to buy a suitable home outright. In addition, priority may be given to:

• first-time buyers with limited housing alternatives;

• members of the armed forces;

• veterans who have left the armed forces within the past two years;

• widows, widowers and other partners of service personnel for up to two years after their partner was killed while serving;

• public sector tenants;

• disabled people;

• families on low incomes.

LIFT – Low-cost Initiative for First-time Buyers

The main scheme supporting home purchases in Scotland is the Low-cost Initiative for First Time Buyers, known as LIFT. It involves the government financing part of the purchase, allowing the buyer to make a smaller deposit and take out a smaller mortgage. Additionally, because part of the property’s value is purchased by the government, the mortgage has a much lower Loan-to-Value ratio.

LIFT operates on a shared equity basis. This means that the share purchased by the government formally belongs to the state. When you sell, the Scottish Government receives the same percentage of the sale price as its share of the home. You can buy out its share in steps of at least 5%, although in some areas it keeps a permanent 10% ‘golden share’.

The LIFT scheme is divided into two types:

Open Market Shared Equity (OMSE) – designed for properties from across the market, including the secondary market;

New Supply Shared Equity (NSSE) – focused on properties newly built by the council or a housing association.

Both types operate in very similar ways and differ only in the details. With NSSE, you buy a new-build home from a housing association or council; with OMSE, you apply first and, once approved, receive a ‘passport letter’ that lets you look for a home on the open market. Under OMSE, the Scottish Government may fund between 10% and 40% of the price (or valuation, if lower); under NSSE, you usually pay 60% to 80% of the price and the Scottish Government holds the rest.

OMSE is open to first-time buyers, plus these priority groups: people aged 60 and over, social renters, disabled people, members of the armed forces, veterans who have left the armed forces within the past two years, and widows, widowers and other partners of service personnel for up to two years after their partner lost their life while serving. The priority for older buyers covers people aged over 60 who meet additional housing-need criteria.

The value of the property must also not exceed a specific amount set by the government. OMSE opens in funding rounds, so check whether it is currently open before you apply.

Summary

In each of these nations, you can access a shared ownership scheme, as well as other schemes specific to that nation:

• in Northern Ireland, the House Sales Scheme;

• in Wales, Help to Buy – Wales (applications must be submitted by 31 March 2027);

• in Scotland, the Low-cost Initiative for First-time Buyers.

If you are planning to buy a home in Scotland, Wales, England or Ireland within the next year, please contact us to arrange a free, no-obligation mortgage consultation. We will be happy to answer all your questions.