This guide covers government-backed home purchase schemes available to buyers in England as of May 2026. Scheme rules, income thresholds, and property price caps change periodically — always verify current eligibility criteria at gov.uk before advising buyers. The Help to Buy Equity Loan closed to new applicants in March 2023 and is covered separately below.
Why scheme buyers need different qualification
A buyer using Shared Ownership, First Homes, or a Lifetime ISA isn't just a standard buyer with a label attached. Government schemes affect which properties a buyer can purchase, what their effective budget is, how long the transaction may take, and whether a given property is even eligible for their scheme. Qualifying them the same way you'd qualify a standard residential buyer will produce inaccurate lead scores and wasted viewings.
The key differences:
- Property restrictions. Shared Ownership requires eligible properties. First Homes requires new-build stock at a qualifying discount. These constraints mean a buyer on that scheme genuinely cannot buy the property you're showing them, no matter how proceedable they are.
- Additional eligibility steps. Scheme applications go through housing associations or local authority processes that add weeks to the timeline. A buyer who is "eligible" and a buyer who has "completed their scheme application" are in very different positions.
- Budget complexity. A Shared Ownership buyer's purchasing budget covers only a share of the property — their true affordability calculation is different from a full-ownership buyer at the same price point. A Lifetime ISA buyer's usable funds include a government bonus that must clear before exchange.
The current scheme landscape in England (2026)
| Scheme | Status | Who it's for | Property type |
|---|---|---|---|
| Shared Ownership | Active | First-time buyers & previous owners who can no longer afford to buy; household income under £80k (£90k in London) | Eligible registered provider properties only |
| First Homes | Active | First-time buyers; household income under £80k (£90k in London) | New-build only, sold at 30–50% discount to market value |
| Lifetime ISA (LISA) | Active | First-time buyers aged 18–39 saving for their first home | Any residential property up to £450,000 |
| Help to Buy Equity Loan | Closed Mar 2023 | No longer available to new applicants in England | N/A — legacy buyers may still be completing |
Wales and Scotland operate separate schemes with different rules. This guide covers England. If you operate in Wales or Scotland, verify the current schemes applicable in your region.
Shared Ownership: what estate agents need to know
The buyer purchases a share of a property (between 10% and 75%) from a housing association or registered provider, and pays subsidised rent on the remaining share. They can "staircase" — buy additional shares over time — up to full ownership in most cases. The buyer gets a mortgage on their share only.
Eligibility (England, 2026)- First-time buyer, or a previous homeowner who cannot currently afford to buy
- Household income under £80,000 per year (£90,000 in London)
- Must be able to demonstrate you cannot afford full ownership of a home that meets your needs
Shared Ownership buyers purchasing through a housing association go through an application and financial assessment process before they can reserve a property. Until that process is complete, their status is unconfirmed regardless of their financial readiness. A buyer who says they are "looking at shared ownership" is in a very different position from one who has completed a housing association assessment and received a reservation letter.
Property restrictionShared Ownership applies only to properties sold through registered providers — typically new-build or resale "staircasing" stock. A shared ownership buyer cannot buy a standard resale property on the open market under the scheme. If they're enquiring on a standard freehold listing, either they've misunderstood the scheme or they're researching what full ownership would cost.
First Homes: what estate agents need to know
First Homes properties are new-build homes sold at a discount of at least 30% below market value (some areas offer 40% or 50%) to eligible first-time buyers. The discount is retained when the property is sold on — future buyers must also meet the eligibility criteria and purchase at the discounted price.
Eligibility (England, 2026)- First-time buyer only
- Household income under £80,000 (£90,000 in London)
- Local connection criteria may apply in some areas
- Must be purchasing a designated First Homes new-build property
First Homes buyers are restricted to specifically designated new-build properties. If your agency primarily handles resale stock, a First Homes buyer enquiring on resale listings is either exploring before committing to the scheme or is unclear on how it works. For new-build agents, the key qualification is whether the specific development has First Homes allocated units — not all new-build properties qualify.
Lifetime ISA: what estate agents need to know
A Lifetime ISA allows first-time buyers (aged 18–39 at account opening) to save up to £4,000 per year and receive a 25% government bonus — up to £1,000 per year. The funds can be used as a deposit on a first home worth up to £450,000. The LISA balance, including the bonus, is paid directly to the conveyancer at completion.
The £450,000 cap — the most important fact for agentsIf the purchase price exceeds £450,000, the buyer cannot use their LISA funds. They face a choice: withdraw the LISA (incurring a 25% government withdrawal penalty on the full balance, which means losing more than just the bonus) or proceed without those funds. This is a hard property price ceiling. A LISA buyer looking at a property priced at £460,000 cannot use their LISA savings without penalty.
Timing implicationLISA funds are released after the buyer's conveyancer requests payment from the LISA provider, which happens close to completion. There is processing time involved — typically 30 days from request to receipt. Budget for this in timeline expectations, particularly in chains.
A buyer who withdraws their LISA for a property over £450,000 loses 25% of the entire balance — not just the government bonus. On a £20,000 LISA balance, the penalty is £5,000. This is a genuine financial loss, not just forfeiting a bonus. Buyers are sometimes unaware of this. If a LISA buyer is enquiring on properties above £450,000, confirm they understand the implications before proceeding.
Help to Buy Equity Loan: closed, but not gone
The Help to Buy Equity Loan scheme in England closed to new applicants in March 2023. No new applications are being accepted. Estate agents will still encounter buyers who:
- Are completing transactions started before the deadline
- Don't know the scheme has closed and are still asking about it
- Are confused between Help to Buy and other schemes (Shared Ownership is often conflated)
When a buyer mentions Help to Buy, confirm which scheme they mean. If they're asking about the equity loan, clarify that it closed to new applications in March 2023 and direct them to Shared Ownership, First Homes, or standard residential purchase options that fit their situation.
Five qualifying questions for government scheme buyers
Standard qualification questions are necessary but not sufficient for scheme buyers. These five questions close the gaps:
How schemes affect proceedability and lead scoring
Scheme buyers who have completed their eligibility assessment and received confirmation are often more motivated than equivalent buyers who haven't — they've invested time in a formal process. But the scheme itself introduces variables that affect how quickly a transaction can progress.
When scoring scheme buyers in your CRM, account for:
- Assessment completed vs. in progress. A buyer who has a scheme eligibility letter from a housing association is more proceedable than one who is "applying." The assessment adds 2–4 weeks to the pre-offer timeline.
- Property eligibility confirmed vs. assumed. Has the buyer confirmed that the specific property they're enquiring on qualifies under their scheme? For Shared Ownership and First Homes, the property must be a designated scheme property — it's not the buyer's eligibility that's uncertain, it's the property's.
- LISA withdrawal lead time. For LISA buyers, factor in 30 days from completion request to fund receipt. This affects completion date calculations in chains.
For the full lead scoring framework including scheme multipliers, see the estate agent lead scoring guide.
A Shared Ownership buyer with a completed housing association assessment, a DIP, and a specific property in mind is highly proceedable — often more so than an equivalent buyer still determining their standard mortgage budget. Don't under-score scheme buyers who have done the work. Score the preparation, not the scheme label.
Common mistakes when qualifying scheme buyers
- Assuming "Help to Buy" means the equity loan. The scheme closed in March 2023. Most buyers who say "Help to Buy" in 2026 mean a different scheme. Ask which one.
- Treating scheme eligibility as binary. "I'm eligible for shared ownership" is not the same as "I have completed a housing association assessment and received approval." There are multiple steps between intention and readiness.
- Missing the property restriction. A First Homes buyer cannot buy a standard resale property. A Shared Ownership buyer on a resale basis can only buy existing shared ownership stock. Confirming scheme eligibility without confirming property eligibility is half a qualification.
- Ignoring the LISA ceiling on higher-priced properties. For any buyer using a LISA, confirm the purchase price is under £450,000. This is a hard ceiling, not a guideline. Miss it at offer stage and the buyer faces a difficult choice.
- Not asking about the mortgage AIP separately. Scheme buyers still need standard mortgage financing for their share or the discounted price. The scheme affects the purchase structure, not the need for mortgage readiness. Ask about AIP regardless of scheme type.
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