First Homes vs Shared Ownership UK: Which Scheme Wins?
With Help to Buy Equity Loan ending in 2023, UK first-time buyers now choose between the First Homes scheme (30-50% discount on new builds) and Shared Ownership (buy 25-75% of a home and rent the rest). Both reduce the deposit hurdle, but they suit very different buyer profiles. Here is how they stack up in 2026.
| Factor | First Homes Scheme | Shared Ownership |
|---|---|---|
| How it works | Buy a new-build at a 30-50% discount (locked in forever) | Buy 25-75% share; pay rent on the unowned share |
| Income cap | £80,000 (£90,000 in London) | £80,000 (£90,000 in London) |
| Who qualifies | First-time buyers; key workers/local buyers prioritised | First-time buyers or those unable to afford open market |
| Deposit required | 5-10% of discounted price (much smaller cash outlay) | 5-10% of the share being bought |
| Mortgage needed | Standard mortgage on discounted price | Mortgage on owned share only |
| Ongoing costs | Mortgage + standard bills | Mortgage + rent (~2.75% of unowned share) + service charge |
| Staircasing | Not applicable — you own 100% from day one | Yes — buy more equity over time up to 100% |
| Resale | Must sell at the same discount % to another eligible buyer | Housing association has first right of refusal |
| Best for | Buyers with stable income wanting full ownership cheaply | Buyers priced out of full ownership who want a foot on the ladder |
Our Verdict
First Homes is the better deal if you can find an eligible new build in your area — you own 100% at a locked-in discount with no ongoing rent. Shared Ownership works for buyers who cannot afford even a discounted full purchase, especially in London and the South East, but the combined mortgage + rent + service charge often costs more monthly than renting outright. Check local First Homes availability first; use Shared Ownership only if no First Homes stock matches your needs.