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.