Help to Buy alternatives in 2026: every scheme that still exists

The Help to Buy Equity Loan scheme in England closed to new applications in October 2022 and stopped completions in March 2023. Three years on, first-time buyers still searching for "Help to Buy 2026" are really asking the same question: what schemes actually exist now to bridge the deposit gap?

The good news is that several schemes remain — some better known than others. The bad news is that none of them is a like-for-like replacement for Help to Buy's equity loan. This guide walks through every realistic alternative available to first-time buyers in England in 2026, who qualifies, and what each is actually worth.

1. Shared Ownership

Shared Ownership lets you buy a share of a property (typically between 10% and 75%) and pay rent on the remainder to a housing association. You can buy more shares over time — a process called "staircasing" — until you own the property outright.

Reforms introduced from April 2021 lowered the minimum initial share to 10%, capped rent rises on the unowned share, and made staircasing available in 1% increments for the first 15 years. For buyers who can afford monthly costs but cannot pull together a full deposit, this is often the most realistic ladder.

Worth knowing: most Shared Ownership homes are leasehold, and you pay rent, service charge, and ground rent on top of your mortgage. The total monthly cost can be higher than buying a similar-priced property outright.

2. First Homes scheme

First Homes is a government scheme offering newly-built properties to first-time buyers at a minimum 30% discount on market value — and that discount stays attached to the property in perpetuity, so the next buyer also gets it. To qualify you must be a first-time buyer, have a household income under £80,000 (£90,000 in London), and intend to use a mortgage covering at least 50% of the discounted price.

Local councils set the priority criteria for who gets allocated each home — key workers and people with a local connection often come first. Stock is limited and concentrated on new-build developments, so availability varies hugely by area.

3. The Lifetime ISA

If you are between 18 and 39, a Lifetime ISA (LISA) is the single most useful tool for a deposit. You can pay in up to £4,000 per tax year and the government adds a 25% bonus — up to £1,000 of free money each year. You can use the funds for a first home worth up to £450,000.

Two catches to plan around. First, the property price cap of £450,000 has not risen since 2017, so it bites in London and the South East. Second, withdrawing for any reason other than a first home (or after age 60) costs a 25% penalty on the entire withdrawal — which is more than the bonus, so you actually end up losing some of your own money.

4. Mortgage Guarantee Scheme

The government's Mortgage Guarantee Scheme, originally launched in 2021 and extended several times, supports lenders offering 95% loan-to-value mortgages. It is not a buyer-facing scheme — you do not apply for it — but it underpins the availability of 5%-deposit products that most mainstream lenders now offer. Whether or not the scheme exists in any given year, several major lenders now run permanent 5%-deposit products independently of it.

5. Stamp duty relief for first-time buyers

It is not a deposit scheme, but it is real money. First-time buyers pay 0% SDLT on the first £300,000 of a property up to £500,000 in England and Northern Ireland. Above £500,000 the relief disappears entirely — full standard rates apply on the whole purchase price. Our stamp duty guide has the worked examples.

6. Family-backed mortgages

Lenders increasingly offer products that use a family member's savings or property equity as security without it counting as a gifted deposit. Names vary — "family springboard", "family deposit", "joint borrower sole proprietor" — but the structure is similar: a parent's savings sit in a linked account, or their property is used as additional security, and the buyer borrows up to 100% of the purchase price.

These products work but are more expensive than standard mortgages, and the family member's money or property is genuinely tied up. Read the small print before assuming this is a free lunch.

7. Right to Buy (and Right to Acquire)

Council tenants in England can buy their home at a discount under Right to Buy. Discount levels were reduced significantly in November 2024, but the scheme still exists. Housing association tenants may qualify for the smaller Right to Acquire scheme. Eligibility is tightly defined by tenancy length and property type.

Which scheme makes sense for you?

The honest answer is that most first-time buyers in 2026 end up using two of these in combination: a LISA for the deposit, plus either Shared Ownership (if the deposit alone is the blocker), a 5%-deposit mortgage (if monthly affordability works), or stamp duty relief (which is automatic on completion if you qualify).

Whichever route you take, the property itself still needs to be fairly priced. Rightmove estimates are usually wrong and Shared Ownership market valuations are often optimistic. Check the asking price against real comparables before you commit.

Frequently asked questions