Government Schemes
An overview of every government-backed route to homeownership, and how to decide which is right for you.
Reviewed and signed off by Patricia Ogunfeibo
Solicitor and Chartered Tax Adviser, both non-practising. UK property since 1986.
Last reviewed
- Applies to:
- England
- Last reviewed:
- Next review:
- November 2026
Checked against GOV.UK. Sources are listed at the end of this guide.
Scheme and lender rules can change. How we label evidence.
Prefer to listen? This guide is available as audio, roughly 8 minutes of listening.
Executive Summary
There are several government backed routes into homeownership beyond buying on the open market. Shared Ownership lets you purchase a share of a property (from 10% under the current model) and pay rent on the rest. Right to Buy allows eligible council tenants to buy their home at a discount, though proposed reforms will extend the qualifying tenancy period to 10 years and reduce discount levels once enacted. First Homes offers 30% to 50% off new builds for eligible first time buyers. The Freedom to Buy scheme, launched in July 2025, permanently supports 95% loan to value mortgages on properties under £600,000. For London key workers, the new Key Worker Living Rent scheme confirmed in January 2026 provides rent controlled homes with rents capped at 40% of average key worker household income.
Individual Scheme Guides
- Shared Ownership, Buy a share, rent the rest, staircase to full ownership
- Right to Buy, Council tenants can purchase their home at a discount
- First Homes, New builds at 30% to 50% off for eligible first time buyers
- Freedom to Buy, Permanent 95% mortgage guarantee scheme
- Rent to Buy, Rent below market rate while saving for a deposit
- Key Worker Living Rent, Affordable rental for London key workers
- Help to Buy (Closed), Guidance for existing equity loan holders
- Lifetime ISA (LISA), Save up to £4,000/year with a 25% government bonus
Finding and Comparing Schemes
- Own Your Home (ownyourhome.gov.uk): The government's official portal for finding shared ownership, First Homes, and other government backed properties
- Share to Buy (sharetobuy.com): A dedicated portal for shared ownership and affordable housing listings
- Local housing associations: Contact housing associations directly in the area where you want to buy
- Council housing departments: For Right to Buy queries and local affordable housing schemes
- Developer websites: For First Homes and shared ownership properties on new build developments
- Your mortgage broker: Can advise on Freedom to Buy eligibility and which lenders participate
Making the Decision
Every scheme has trade offs. Before committing, work through these considerations.
| Question | Why It Matters |
|---|---|
| What are the total monthly costs? | Mortgage, rent (if shared ownership), service charges, insurance, and any loan interest. Compare the total with what you would pay renting privately. |
| What are the long term costs? | Shared ownership rent increases, Help to Buy interest after year 5, service charge inflation. Model the costs over 5 and 10 years, not just month one. |
| What restrictions apply when selling? | Shared ownership has nomination periods. First Homes must be sold at the same discount to an eligible buyer. Right to Buy properties have resale restrictions in the first 5 years (rising to 10 under proposed reforms). |
| What is the exit strategy? | Can you staircase to full ownership? Can you remortgage? What happens if your circumstances change and you need to sell quickly? |
| Are there hidden charges? | Lease extension costs (for leasehold properties), ground rent (for older shared ownership leases), freeholder charges, and consent fees for alterations. |
Myths vs Facts
MYTH
95% mortgages are only available temporarily.
FACT
The Freedom to Buy scheme, launched in July 2025, permanently guarantees the availability of 95% loan to value mortgages. Unlike previous temporary schemes, it has no end date.
MYTH
Help to Buy is still available for new buyers.
FACT
The Help to Buy Equity Loan scheme closed to new applicants in October 2022 and ended entirely in March 2023. It is no longer available. Existing borrowers still need to manage their equity loans and plan for repayment.
Action Checklist
Where this comes from
Each source is labelled so you can tell a government rule from market practice, and both from our own view. Read our evidence standard.
- Government ruleGOV.UK, own your home schemes
- Government ruleGOV.UK, first-time buyer and housing guidance
- Our guidancetenant2owner editorial standards and our own interpretation
Your next steps
You do not need to read everything. Based on this guide, these are the useful next moves.
1. Do this now
Readiness CheckAround 90 seconds. See how close you are and what to fix first.
2. Read this next
Shared Ownership
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