Quick Overview: What Is Available Now?
Here is a summary of the main schemes available to new build buyers in the UK as of 2025/26. Each is explained in detail below.
- First Homes — 30–50% discount on new builds for first-time buyers (England)
- Shared Ownership — Buy a 25–75% share and rent the rest (UK-wide)
- Lifetime ISA — Government adds 25% bonus to your deposit savings (UK-wide)
- Mortgage Guarantee Scheme — Enables 95% mortgages backed by government guarantee (UK-wide)
- Own New Rate — Developer-subsidised mortgage rates on new builds (England)
- Deposit Unlock — 95% mortgages specifically for new builds (England)
- Help to Buy (Wales) — Equity loan scheme similar to the original Help to Buy (Wales only)
- Regional and local schemes — Council-specific grants and discounts
Help to Buy: Equity Loan (England) closed to new applications in October 2022 and all completions had to be finalised by March 2023. It is no longer available. For details on what happened and what to do if you already have a Help to Buy loan, see our Help to Buy explained guide.
First Homes
How It Works
First Homes is an England-only scheme that offers new build properties at a discount of at least 30% (and up to 50% in some areas) compared to their full market value. The discount is set by the local council and is passed on to future buyers when you sell, meaning the property always remains affordable.
Who Qualifies
- Must be a first-time buyer
- Household income must be under £80,000 (or £90,000 in London)
- The discounted price must be no more than £250,000 (£420,000 in London)
- Must purchase with a mortgage of at least 50% of the discounted price
- Must be your only and main residence
How Much You Could Save
On a property with a full market value of £300,000, a 30% First Homes discount means you pay £210,000. That is a £90,000 saving. Your mortgage and deposit are calculated on the discounted price, making monthly payments significantly lower.
Things to Know
- The discount is a restrictive covenant on the property title — it stays with the home forever. When you sell, the next buyer also gets the 30% discount.
- Local councils may prioritise key workers, military personnel, or people with a local connection.
- You cannot rent the property out (it must be your main home).
- Availability is limited — not all new build developments include First Homes plots. Check with your local planning authority.
Shared Ownership
How It Works
Shared Ownership allows you to buy a share of a new build home (typically 25–75%) and pay rent on the portion you do not own. The remaining share is owned by a housing association. Over time, you can buy additional shares — a process called staircasing — until you own 100%.
Who Qualifies
- Household income must be under £80,000 (or £90,000 in London)
- You must be a first-time buyer, a previous homeowner who cannot afford to buy now, or an existing shared owner looking to move
- You must not already own another property at the time of purchase
Costs in Practice
On a £300,000 new build, buying a 25% share means your purchase price is £75,000. You need a deposit of 5–10% of your share (£3,750–£7,500), plus a mortgage on the remaining share amount. You also pay rent on the 75% you do not own — typically around 2.75% of the housing association's share per year, which would be approximately £515/month in this example.
Your total monthly cost is the mortgage payment plus the rent. As you staircase and buy more shares, the rent decreases.
Pros and Cons
- Pro: Very low deposit requirement — you can get on the ladder with as little as £3,750 in this example
- Pro: Monthly costs can be lower than renting the equivalent property privately
- Con: You pay rent on the share you do not own, which is not building equity
- Con: Staircasing to 100% can be expensive as the property value increases over time
- Con: Selling a shared ownership property can be slower because the housing association usually has a nomination period to find a buyer first
For a detailed comparison with other schemes, see our scheme comparison guide.
Lifetime ISA (LISA)
How It Works
The Lifetime ISA lets you save up to £4,000 per year toward your first home. The government adds a 25% bonus on top of your contributions — that is up to £1,000 per year in free money.
Who Qualifies
- Must be aged 18–39 to open an account (you can contribute until age 50)
- Must be a first-time buyer
- The property you purchase must cost £450,000 or less
- Must be purchasing with a mortgage (not a cash purchase)
How Much You Could Save
If you save £4,000 per year for four years, you will have £16,000 in contributions plus £4,000 in government bonuses, totalling £20,000 (before any interest). That is a meaningful deposit contribution.
Things to Know
- If you withdraw money for anything other than buying your first home or retirement, you face a 25% withdrawal penalty — which means you lose your bonus and some of your own savings.
- You can hold a LISA alongside other ISAs (Cash ISA, Stocks and Shares ISA).
- Some solicitors and mortgage lenders are slow to process LISA withdrawals, so start the withdrawal process early — at least 30 days before you need the funds.
- You can use a LISA in combination with other schemes like Shared Ownership or First Homes.
Mortgage Guarantee Scheme
How It Works
The Mortgage Guarantee Scheme encourages lenders to offer 95% loan-to-value (LTV) mortgages by providing a government guarantee on the portion of the loan above 80% LTV. This is not a scheme you apply for directly — it works behind the scenes to make more 95% mortgage products available from high street lenders.
Who Qualifies
- Any buyer (not just first-time buyers)
- Property must be worth £600,000 or less
- Must be a residential mortgage (not buy-to-let)
- Must be a repayment mortgage (not interest-only)
How It Helps New Build Buyers
Before this scheme, many lenders were reluctant to offer 95% LTV mortgages — especially on new builds, which they considered higher risk. The government guarantee has made 5% deposit mortgages far more widely available, including on new build properties.
Note: The scheme was originally set to end in June 2025. Check with your mortgage broker or gov.uk for the latest status.
Own New Rate
How It Works
Own New Rate is a developer-lender partnership where the developer uses part of their marketing budget to buy down the mortgage interest rate for the buyer. This results in a significantly lower fixed rate for the initial period (typically two to five years), making monthly payments much more affordable.
Example
On a £300,000 mortgage, the difference between a standard 4.5% rate and a developer-subsidised 2.5% rate would save approximately £300 per month during the fixed period. Over a five-year fixed term, that is £18,000 in savings.
Who Qualifies
- Available on selected new build developments from participating developers and lenders
- Open to first-time buyers and home movers
- Standard mortgage affordability checks apply
Things to Know
- Not available on all developments — ask the sales team specifically about Own New Rate
- When the subsidised fixed period ends, your rate reverts to the lender's standard variable rate. You should plan to remortgage at that point.
- The developer's contribution is disclosed to the lender and counts toward incentive thresholds
Deposit Unlock
How It Works
Deposit Unlock is a scheme developed by the Home Builders Federation (HBF) in partnership with mortgage lenders. It allows buyers to purchase a new build home with just a 5% deposit, with the developer providing an insurance-backed guarantee to the lender to cover any shortfall if the property value drops.
Who Qualifies
- Available on new builds from participating developers only
- Open to first-time buyers and home movers
- Must meet the lender's standard affordability criteria
How It Differs from the Mortgage Guarantee Scheme
The Mortgage Guarantee Scheme is government-backed. Deposit Unlock is industry-backed (developer + insurer). Both achieve the same result — a 95% LTV mortgage on a new build — but through different mechanisms. Some developments may offer one, the other, or both.
Help to Buy Wales
How It Works
Help to Buy Wales operates similarly to the original Help to Buy Equity Loan in England. The Welsh Government provides a shared equity loan of up to 20% of the purchase price on new build homes in Wales. Buyers need a minimum 5% deposit, with a mortgage covering the remaining 75%.
Who Qualifies
- Available to all buyers (not restricted to first-time buyers)
- The property must be a new build in Wales
- Maximum property price: £300,000
- Must be your main residence
Repayment Terms
The equity loan is interest-free for the first five years. From year six, a fee of 1.75% of the loan value is charged, increasing annually by RPI inflation plus 1%. The loan must be repaid when you sell the property, remortgage, or at the end of the mortgage term.
Note: Help to Buy Wales has been extended multiple times. Check the Welsh Government website for the latest availability and application deadlines.
Regional and Local Schemes
In addition to national programmes, some local councils and housing associations run their own schemes:
- Local authority mortgage schemes: Some councils partner with lenders to offer favourable mortgage terms to local residents
- Community-led housing: Discounted new builds developed by community land trusts, often in rural areas with high house prices
- Key worker schemes: Priority access or discounts for NHS staff, teachers, police officers, and other key workers in some local authority areas
- Section 106 affordable housing: Developers are often required by planning conditions to include a proportion of affordable homes on larger developments — these may be available through Shared Ownership or at discounted prices
Contact your local council's housing team to find out what is available in your area.
Which Scheme Is Right for You?
- Smallest deposit possible: Shared Ownership (as low as 5% of a 25% share) or Deposit Unlock / Mortgage Guarantee Scheme (5% of full price)
- Biggest discount on price: First Homes (30–50% off market value)
- Lowest monthly payments: Own New Rate (subsidised mortgage rate) or Shared Ownership (if your rent + mortgage is less than a full mortgage)
- Maximum long-term flexibility: Lifetime ISA (no restrictions on which property you buy, up to £450,000) combined with a standard mortgage
- Buying in Wales: Help to Buy Wales equity loan
For a detailed side-by-side comparison, see our scheme comparison guide. To understand how these schemes interact with developer incentives, see our guide on combining schemes with incentives.
Frequently Asked Questions
Is Help to Buy still available?
Help to Buy: Equity Loan (England) closed to new applications in October 2022, with a final completion deadline of March 2023. It is no longer available in England. Help to Buy Wales may still be running — check the Welsh Government website. The schemes listed above are the current alternatives.
Can I use more than one scheme at once?
Some combinations are possible. For example, you can use a Lifetime ISA toward your deposit on a Shared Ownership or First Homes purchase. However, you generally cannot stack multiple equity loan or discount schemes on the same property. See our combining schemes guide for details.
Do these schemes work on all new builds?
No. Each scheme has its own eligibility criteria for properties. First Homes must be specifically allocated by the developer under planning conditions. Shared Ownership properties are provided by housing associations. Own New Rate and Deposit Unlock are only available on participating developments. Always check availability with the developer before assuming a scheme applies.
I already have a Help to Buy equity loan. What do I need to know?
If you purchased with Help to Buy before it closed, your equity loan terms remain unchanged. Interest-free for the first five years, then fees apply. You will need to repay the loan when you sell or remortgage. For full details, see our Help to Buy explained guide.
Are these schemes available to non-first-time buyers?
Some are. The Mortgage Guarantee Scheme, Deposit Unlock, Own New Rate, and Help to Buy Wales are open to home movers, not just first-time buyers. First Homes and the Lifetime ISA bonus are restricted to first-time buyers only.