Several schemes exist to help first-time buyers, and every one of them trades help for restrictions. This step surveys the current landscape — the Lifetime ISA, Shared Ownership, First Homes and family-assisted mortgages — with the catches stated as plainly as the benefits, because a scheme chosen for the discount and regretted for the strings is a bad trade.
Shared ownership: part-buy, part-rent
You buy a share of a home (usually 25–75%, and from just 10% on some newer homes) with a small deposit and mortgage, and pay rent to a housing provider on the rest, usually plus a service charge — three monthly costs, not one. You can increase your share later ('staircasing'), but each staircase involves valuation and legal fees. It genuinely opens doors in expensive areas; it also concentrates leasehold complexity and total monthly costs that can rival buying outright. Price the whole monthly bill, not the deposit.
First Homes and other discounts
The First Homes scheme sells selected new-build homes to qualifying first-time buyers at a 30–50% discount — with a household income cap of £80,000 (£90,000 in London) and local eligibility rules — but the discount is baked into the title forever, applying when you sell too. Developer incentives (deposit contributions, paid legal fees) are simpler but priced into the home more often than not. Verify every scheme's current status on GOV.UK; availability shifts with governments.
Family-assisted routes
Guarantor and joint-borrower-sole-proprietor mortgages let family income or property support your loan without co-owning. Springboard-style products hold family savings as security. These can beat a gifted deposit for families who want their money back — but they put the helper's savings or home genuinely at risk if you default, and everyone involved should take advice before signing.
| Scheme | The help | The catch |
|---|---|---|
| Lifetime ISA | 25% bonus on up to £4,000/year of savings | £450,000 property cap; withdrawal charge for other uses |
| Shared ownership | Buy a 10–75% share with a small deposit | Rent + service charge on top; staircasing costs; leasehold |
| First Homes | 30–50% discount on selected new builds | Income caps and local eligibility; discount binds resale forever |
| Guarantor / JBSP mortgages | Family income or assets boost borrowing | Helper's money or home is at risk; needs advice |
Your action list
Official sources
Practical tips
- Schemes stack thoughtfully: a LISA deposit into a First Homes purchase is legitimate if both sets of rules are met.
- Ask a shared ownership provider for the last three years of service charge history before reserving.
What can go wrong
- Scheme details in articles and forums go stale fast — only GOV.UK and the scheme provider are current.
- A discount that caps your resale market or adds rent forever is not free money; model the exit before the entry.
- PropertySquares provides education, not financial or legal advice. Verify current rules and obtain advice for your circumstances before acting.