For a decade, Help to Buy was the government's flagship first-time buyer scheme — a £29 billion programme that helped over 375,000 people onto the property ladder. But its equity loan scheme closed to new applicants on 31 October 2022, and the Help to Buy ISA had already shut its doors in 2019. In 2026, the question is not "Help to Buy or Shared Ownership?" — it is "what has replaced Help to Buy, and is Shared Ownership now the best remaining option?"
This guide explains what each scheme was, what Shared Ownership looks like in 2026, and which newer alternatives — First Homes, Deposit Unlock, and the reformed Shared Ownership model — are worth your attention. This is general information, not financial advice.
Help to Buy: what it was
The Help to Buy: Equity Loan scheme allowed first-time buyers to purchase a new-build home with a 5% deposit, topped up by a government equity loan of up to 20% of the property value (40% in London). The loan was interest-free for the first five years, after which interest was charged at 1.75% of the loan value, rising annually by CPI inflation plus 1%.
The scheme was popular — it supported 375,654 property purchases between 2013 and 2023, according to Homes England data — but it was also criticised for inflating new-build prices and directing subsidy to housebuilders as much as buyers. The government chose not to extend it, and the final deadline for completions was 31 March 2023.
If you hold an existing Help to Buy equity loan, it remains in place. You can repay it in full, staircase it down in partial payments, or let it run — but you cannot take out a new one.
Shared Ownership: the 2026 model
Shared Ownership is a part-buy, part-rent scheme that remains open to new applicants. You buy a share of a property — typically 25% to 75% — and pay a subsidised rent on the remaining share to a housing association. Over time, you can buy additional shares ("staircasing") until you own 100% of the property.
The 2021–2026 Shared Ownership model introduced several reforms that make the scheme more attractive than its predecessor:
- Minimum initial share reduced from 25% to 10%, making the upfront cost even lower.
- Landlord responsible for essential repairs for the first 10 years, covering things like the boiler, roof, and structure — previously, shared owners paid 100% of repair costs from day one.
- Staircasing in 1% increments, rather than the old minimum of 10% chunks, making it easier to increase ownership gradually.
- Leases of at least 990 years for new homes, removing the lease-extension anxiety of older models.
What Shared Ownership costs in 2026
Let us say you buy a 25% share of a £300,000 new-build flat:
- Share value: £75,000
- Deposit (5%): £3,750
- Mortgage (95% of share): £71,250
- Monthly mortgage (at 5%, 30 years): ~£382
- Monthly rent on 75% unsold share (at 2.75% of £225,000): ~£516
- Monthly service charge: ~£120
- Total monthly housing cost: ~£1,018
That compares with renting the same property privately at, say, £1,200–£1,400 per month — and you are building equity in the 25% share you own.
The trade-offs
Shared Ownership is not a free lunch. The key downsides:
- You pay 100% of the repair and maintenance costs for the property (though the 10-year landlord repair obligation on new-model leases covers major items).
- Staircasing costs — each time you buy an additional share, you need a valuation and conveyancing, which can cost £1,500–£2,500.
- Selling can be more complicated than a standard sale, as the housing association has the right to find a buyer first (the "nomination period").
- Subletting is generally not permitted, so Shared Ownership is not an investment vehicle.
What has replaced Help to Buy?
Several schemes have emerged to fill the gap:
First Homes
Launched in 2022, the First Homes scheme offers new-build homes at a 30–50% discount on market value to first-time buyers, with the discount locked into the property permanently (meaning you sell it at the same percentage discount later). It is aimed at local key workers and first-time buyers earning under £80,000 (£90,000 in London). The scheme has been slow to scale — uptake varies significantly by local authority — but it represents genuine value where available.
Deposit Unlock
Deposit Unlock is an industry-led scheme backed by housebuilders and lenders that allows first-time buyers and home-movers to purchase a new-build with a 5% deposit — without a government equity loan. Participating lenders include major high-street names, and it covers properties up to £750,000. Unlike Help to Buy, there is no government loan to repay and no interest charges after five years — you simply have a 95% mortgage.
Mortgage Guarantee Scheme
Extended in the 2024 Autumn Budget, the government's Mortgage Guarantee Scheme encourages lenders to offer 95% loan-to-value mortgages by providing a partial government guarantee. It is not a direct subsidy to buyers, but it has kept 5%-deposit mortgages available through high-street lenders through 2026.
Head-to-head comparison
| Factor | Shared Ownership | First Homes | Deposit Unlock |
|---|---|---|---|
| Status in 2026 | Open | Open (limited availability) | Open |
| Minimum deposit | 5–10% of share (e.g. £3,750 on £300k) | 5% of discounted price | 5% of full price |
| Ownership | Part-buy, part-rent | Full ownership | Full ownership |
| Ongoing costs | Mortgage + rent + service charge | Mortgage only | Mortgage only |
| Price cap | Varies by region | £250,000 (£420,000 London) after discount | £750,000 |
| Staircasing | Yes — up to 100% | N/A (full ownership) | N/A |
| Selling restrictions | Housing association nomination period | Discount locked in permanently | None |
| Best for | Low deposit, lower income | Key workers, local buyers | Buyers with decent income but small deposit |
Who each suits in 2026
Shared Ownership suits:
- Buyers with a small deposit who cannot reach a 10–15% conventional mortgage deposit.
- People on moderate incomes (under £80,000, or £90,000 in London) who can afford the combined mortgage-plus-rent payment.
- Those willing to accept the administrative complexity of staircasing and resale restrictions.
- Buyers in areas where private rents are high and the rent element of Shared Ownership is genuinely cheaper.
First Homes suits:
- Key workers and local first-time buyers in areas where the scheme is actively offered.
- Buyers who can secure a mortgage on the discounted price (which, after a 30% discount, may be more accessible).
- Those willing to accept the permanent discount lock — you benefit on the way in but give up the same percentage on the way out.
Deposit Unlock suits:
- Buyers with a steady income who can afford monthly mortgage payments but have not yet saved a large deposit.
- Those buying a new-build in the £200,000–£500,000 range where participating builders and lenders operate.
- Anyone who wants full ownership from day one with no shared-equity or shared-ownership complications.
The bottom line
Help to Buy is gone — it closed to new applicants in 2022 and no replacement of equivalent scale has arrived. Shared Ownership remains the most accessible low-deposit route for first-time buyers in 2026, and the post-2021 reforms have made it more attractive than earlier versions. First Homes offers genuine discounts where available, but availability remains patchy. Deposit Unlock is the closest successor to Help to Buy in spirit — a 5% deposit on a new-build with no government loan — and it is available now through mainstream lenders.
The right choice depends on your deposit, your income, and what is available in your area. Check eligibility for all three before committing to one path — and always factor in the full monthly cost (mortgage, rent, service charge, and maintenance) rather than just the deposit.