Buying your first home in London feels difficult right now. House prices remain high, deposits are expensive, and many buyers still think Help to Buy exists when it no longer does.
The good news is that several first-time buyer schemes are still available in 2026. Some can genuinely help you get onto the London property ladder faster with a smaller deposit or lower monthly costs.
In this guide, we explain every major first-time buyer scheme in London, how each one works, who qualifies, and which option may suit you best.
If you are wondering how to buy your first home in London in 2026, this is the guide you need.
Is Help to Buy Still Available in London?
No. The Help to Buy Equity Loan scheme officially closed in England in 2023.
However, many first-time buyers still search for a “Help to Buy alternative London” because several replacement schemes now exist.
The most popular first-time buyer schemes in London in 2026 include:
- Lifetime ISA (LISA)
- Shared Ownership
- Mortgage Guarantee Scheme
- First Homes Scheme
Each scheme works differently, and the right one depends on your income, deposit size, and the area you want to buy in.
Lifetime ISA 2026: One of the Best Ways to Save for a Deposit
Best for buyers saving for their first home
The Lifetime ISA, often called a LISA, remains one of the best government-backed schemes for first-time buyers in 2026.
Here is why.
You can save up to £4,000 per year into a Lifetime ISA, and the government adds a 25% bonus on top. That means you can receive up to £1,000 in free government money every year.
Over several years, this can significantly boost your house deposit.
Lifetime ISA rules in 2026:
- You must be aged between 18 and 39
- The property must cost £450,000 or less
- The property must be your first home
- You must keep the account open for at least 12 months before using it
For many London buyers, the £450,000 property limit is the biggest challenge. In central London, this budget can be restrictive.
However, buyers looking in outer London boroughs often still find the Lifetime ISA extremely useful.
Quick Tip
Open a Lifetime ISA as early as possible. Even small monthly savings can build a large government bonus over time.
Shared Ownership London: Buying With a Smaller Deposit
Best for buyers struggling to afford a full property purchase
Shared Ownership remains one of the most popular first-time buyer schemes in London.
The scheme allows you to buy a percentage share of a property, usually between 25% and 75%, while paying rent on the remaining portion owned by a housing association.
This reduces the size of the deposit needed upfront.
For example:
- Full property price: £400,000
- 25% share purchased: £100,000
- 10% deposit needed: £10,000
This makes Shared Ownership far more achievable for many London buyers.
Over time, you can increase your ownership share through a process known as staircasing.
Important Things to Consider
Before buying through Shared Ownership, remember:
- You will pay both mortgage payments and rent
- Service charges can still apply
- Selling Shared Ownership properties can sometimes take longer
That said, for many buyers, Shared Ownership is still one of the most realistic ways to buy property in London in 2026.
Mortgage Guarantee Scheme 2026
Best for buyers with only a 5% deposit
The Mortgage Guarantee Scheme helps buyers purchase property with a deposit as low as 5%.
The government guarantees part of the mortgage for lenders, encouraging banks to offer more 95% loan-to-value mortgages.
This is especially useful for:
- Younger buyers
- Buyers paying high London rent
- Buyers with strong income but limited savings
For example:
- Property price: £300,000
- 5% deposit required: £15,000
Compared to traditional 10% or 15% deposits, this can help buyers purchase much sooner.
One Important Warning
Although 5% deposit mortgages are easier to access now, monthly repayments are usually higher because interest rates on high loan-to-value mortgages tend to be more expensive.
Always check affordability carefully before committing.
First Homes Scheme London
Best for key workers and local first-time buyers
The First Homes Scheme offers selected new-build properties at discounts of at least 30% below market value.
Some boroughs even offer discounts of up to 50%.
The scheme prioritises:
- Nurses
- Teachers
- Police officers
- Local residents
- Key workers
Unlike older government schemes, the discount remains attached to the property permanently. This means future buyers also benefit from affordable pricing.
The Challenge in London
Availability is currently limited in many London boroughs, and competition can be high.
However, where available, the scheme can offer significant long-term value.
Stamp Duty for First-Time Buyers in London 2026
Many London buyers are shocked by current stamp duty costs.
Since April 2025, the first-time buyer stamp duty threshold reduced from £425,000 to £300,000.
This means many London first-time buyers now pay stamp duty earlier than before.
Example:
On a £400,000 property:
- The first £300,000 is tax-free
- You pay 5% on the remaining £100,000
- Total stamp duty bill: £5,000
For properties above £500,000, first-time buyer relief disappears completely.
This is why many buyers in London are now targeting properties closer to the £300,000 range where possible.
Which First-Time Buyer Scheme Is Best in London?
The best scheme depends entirely on your financial position.
Choose a Lifetime ISA if:
- You are still saving for a deposit
- You are buying below £450,000
- You want free government savings bonuses
Choose Shared Ownership if:
- Full London property prices feel unaffordable
- You have a smaller deposit
- You want to buy sooner
Choose the Mortgage Guarantee Scheme if:
- You only have a 5% deposit
- You have stable income
- You want access to standard property ownership
Choose the First Homes Scheme if:
- You are a key worker
- You qualify for local borough criteria
- You want discounted new-build property
There is no single “best” scheme for everyone.
How to Buy Your First Home in London in 2026
Buying property in London is still possible in 2026, but the process requires planning, realistic budgeting, and the right advice.
Many buyers delay purchasing simply because they do not fully understand what support is available.
At Homefinders, we help first-time buyers across London:
- Understand mortgage options
- Explore government schemes
- Find affordable areas
- Connect with trusted mortgage brokers
- Navigate the buying process confidently
Whether you are just starting to save or ready to buy this year, getting professional advice early can save you time, stress, and money.
Speak to Homefinders Today
If you are planning to buy your first home in London, our team is here to help.
We offer free guidance for first-time buyers and can help you understand which schemes may work best for your situation.
Book your free consultation today and take the first step towards owning your first home in London.