Government house buying schemes in 2026
Buying a home is costly. You’ve got your deposit to save up for if you’re a first-time buyer, conveyancing fees, and everything else that comes with purchasing a home. This can make getting on the property ladder challenging, but there are schemes and resources out there to help make it more achievable. Discover all the government-backed schemes designed to help you buy a house, which will continue to help people get on the property ladder throughout 2026.
Government schemes for buying a house
Mortgage Guarantee Scheme – 5% Deposits
A key government scheme for people purchasing a home is the Mortgage Guarantee Scheme. This was first introduced in 2021, the original scheme ended in 2025; however, a new permanent version has been announced for 2026, with availability dependent on specific lenders.
This new permanent scheme will allow people purchasing a home to put a deposit down of only 5% while taking out a mortgage for the remaining 95%. This essentially makes saving up for a house deposit and purchasing a home much more achievable.
Is this only available to first-time buyers?
No, the 5% deposit scheme isn’t just for first-time buyers, it’s for everyone. The government-backed guarantee provides lenders with peace of mind, allowing home buyers to make lower deposits. You will, however, need to have a good credit score, as most lenders will view 95% mortgages as an increased risk, as it essentially makes your monthly repayments higher and less affordable. Read our handy guide on how to improve your credit score.
Certain lenders also offer 100% mortgages, also known as zero-deposit mortgages. This is where you borrow the full value of the property with no deposit, unlike the usual 5 or 10%. If the home you’re purchasing is valued at £200,000, you will borrow this full amount from the lender and make monthly repayments. Find out more about 100% mortgages, whether you’re eligible, and what the pros and cons are.
Shared ownership homes
Shared ownership is a government house buying scheme designed for both first-time buyers and previous homeowners who can’t afford to buy a property on the mainstream market. The scheme allows them to buy a share of the property rather than the whole thing, making homeownership achievable. You buy a home between 10% and 75% of the market value, and then pay rent on the remaining value to a landlord.
Government schemes for first-time buyers
Lifetime ISAs
The Lifetime ISA (LISA) is a government-backed savings account designed exclusively for first-time home buyers. This allows you to put up to £4000 into your account every year, and when you’re ready to purchase your first home, the government will add a 25% bonus to the money you’ve saved, up to a maximum of £1000 a year.
First Homes Scheme
The First Homes Scheme is an initiative available in England only that allows first-time buyers to purchase a home for 30% below its actual market value. This primarily applies to new-build homes, but it can also be used to purchase some resale properties if the house was previously purchased under the First Homes Scheme. You must be only be planning to live in this home, as this scheme isn’t available for those buying to let. Discover other attributes you need to qualify for this scheme:
- You need to be at least 18 years old
- You must be a first-time buyer
- You will need to qualify for a mortgage on the share being offered
- Your yearly income has to be under £80,000 before deductions
- The home you’re purchasing must equal £250,000 or less after the discount has been applied (£420,000 for homes in London)
If you’re stuck between a new-build home vs an existing property, read our guide to help you decide which option is right for you.
Stamp Duty Relief
If your first home is under £500,000, you will benefit from stamp duty relief. This cuts out a high cost in the home-buying process for first-time buyers, making purchasing a home more achievable. If the property is valued over £500,000, then you won’t be eligible for stamp duty relief. For more information, read our helpful guide to stamp duty to find out what it is and if you’ll have to pay it. For first-time buyers in particular, we have a full guide on first-time buyer stamp duty.
Help To Buy ISAs
The Help to Buy ISA is another government-backed savings account designed to help first-time buyers onto the property ladder. When you buy your first home, the government will top up your savings by 25% (up to the value of £3000).
Although this scheme is no longer available to new applicants, if you already have an account open, you can continue paying into it until November 2029, and you will be able to claim the 25% bonus until November 2030.
The UK government budget for 2026
The annual autumn government budget announcement sets out spending plans for the UK for the year ahead and announces any significant changes for taxpayers or new government-backed schemes. The outcome of this year’s recent budget announcement brings further stability for home buyers into the new year. All the schemes mentioned above still stand; there are no new changes to Stamp Duty tax, and affordability still depends more on interest rates than on any other factor. Our new-build homes at County Town Homes in the £270,000 to £500,000 range avoid any new taxes, and are still the perfect option for first-time buyers and forever-home finders alike.
Discover our new-build homes at County Town Homes
If you’re looking to buy a home in 2026, whether you’re a first-time buyer or you’re on the hunt for your forever home, our houses for sale in Staffordshire could be the perfect fit. From 2-bedroom semi-detached homes ideal for first-time buyers, to fully detached 4-bedroom homes perfect for growing families, we have something for everyone at County Town Homes. Contact us to find out more and discuss available plots.
