Is Help to Buy still available in 2026?

No. The Help to Buy Equity Loan scheme closed to new applicants in March 2023. It is no longer available. Existing loans continue to run under their original terms.

What is the best scheme for a first-time buyer in Manchester?

For most first-time buyers saving a deposit, the Lifetime ISA is the single most valuable tool available — a 25% bonus on savings, effectively free money. Shared Ownership works well for buyers whose income is sufficient to qualify for a mortgage but who can't reach the deposit level for outright purchase.

Can I combine a Lifetime ISA with Shared Ownership?

Yes. You can use Lifetime ISA funds as part of your deposit on a Shared Ownership purchase, provided the full market value of the property is £450,000 or less. This combination can significantly reduce the initial deposit required.

What happens when I want to buy more of a Shared Ownership property?

The process is called staircasing. You can buy additional shares (usually in 10% increments) at the current market value at the time. Each staircase purchase requires a new mortgage arrangement for the additional share. Once you own 100%, you own the property outright.

Who qualifies for the First Homes scheme?

First Homes is aimed at local first-time buyers, key workers (nurses, police officers, teachers), and military veterans. There are local income caps (£80,000 in Manchester, or whatever the local authority sets). The scheme applies only to new-build homes and the discount is retained when the property is resold.

First-Time Buyer Schemes 2026 | Dom

The landscape for first-time buyer support has changed significantly. Help to Buy is gone. But several meaningful schemes remain — and one of them (the Lifetime ISA) is something every first-time buyer should be using.

Lifetime ISA (LISA)

The Lifetime ISA is the most universally useful tool available to first-time buyers. It is not a scheme for buying a specific type of property — it's a savings account with a government bonus attached.

How it works:

Open a LISA with a bank or investment provider
Save up to £4,000 per year
The government adds a 25% bonus, paid directly into your LISA — up to £1,000 per year
You can only use the funds to buy your first home (or for retirement)

Rules:

Must be aged 18–39 when you open the account
The property must cost £450,000 or less
You must be a first-time buyer
The LISA must have been open for at least 12 months before use

What happens if you need the money for something else? You can withdraw, but you pay a 25% penalty on the total withdrawal — which effectively claws back the bonus and then some. Don't put money in that you might need before your purchase.

If you haven't opened a LISA yet: open one today. You have nothing to lose by opening it and starting to save, and you're leaving up to £1,000 per year on the table by not doing so.

Shared Ownership

Shared Ownership allows you to buy a share of a property (typically 10–75%) from a housing association and pay a subsidised rent on the remaining share.

How it works:

You get a mortgage on the share you're buying (say 25% of a £240,000 flat = £60,000)
You pay rent on the remaining 75% (at below-market rate)
You can buy more shares over time (staircasing)

Eligibility:

Household income must be £80,000 per year or less in most areas (£90,000 in London)
Must be a first-time buyer (or previous homeowner who can no longer afford to buy outright)
Must be the only home you own

Advantages: Lower deposit required (just 5–10% of your share, not the whole property value). Allows you to get on the ladder in areas where outright purchase is unaffordable.

Disadvantages: Service charges (always leasehold), rent alongside mortgage payments, restrictions on improvements, complex resale process. Shared Ownership is not always cheaper than renting in the short term — run the numbers carefully.

First Homes

The First Homes scheme offers newly built homes at a minimum 30% discount to market value for eligible buyers. The discount is retained in perpetuity — when you sell, you sell at a discount, passing the benefit to the next eligible buyer.

Who qualifies:

First-time buyer
Local connection to the area (specified by the local authority)
Household income: typically £80,000 or less
Key workers and military veterans may have priority

Manchester availability: First Homes is developer- and site-specific. Check with developers building in your target area, or search the First Homes portal.

Right to Buy

Council tenants may be eligible to buy their home at a discount through Right to Buy. The discount depends on how long you've been a council tenant and the type of property.

Current discount levels (2026):

Up to £102,400 discount (£136,400 in London)
Minimum 3 years as a public sector tenant to qualify

Right to Buy is only available on your council home. If you're a council tenant and thinking about whether this makes financial sense, get independent financial advice.

Help to Buy: closed

Help to Buy Equity Loan allowed buyers to take a government loan of up to 20% (40% in London) of a new-build purchase price, interest-free for 5 years. It closed to new applicants in March 2023 and is no longer available.

If you have an existing Help to Buy loan: the interest-free period ends after 5 years, at which point interest accrues. You repay the loan when you sell or remortgage. If you're approaching the end of your interest-free period, take advice on your repayment options.

This guide is information only. Dom does not provide financial, mortgage or legal advice. Always consult a qualified adviser for decisions specific to your circumstances.

First-Time Buyer Schemes 2026: What's Available

Lifetime ISA (LISA)

Shared Ownership

First Homes

Right to Buy

Help to Buy: closed

Frequently asked questions

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