First-Time Buyer Guide UK 2026: LISA, Schemes and How to Get on the Ladder
Updated April 2026 · 10 min read
Getting on the Property Ladder in 2026
The average first-time buyer in the UK is now 31 years old with a deposit of GBP 34,000. House prices remain challenging but several government schemes can help. The most powerful tool available is the Lifetime ISA, which gives you GBP 1,000 free per year towards your deposit. Use our savings calculator to project your deposit growth and our affordability calculator to see what you can buy.
The Lifetime ISA Strategy
Open a LISA as early as possible (available from age 18). The account must be open for at least 12 months before you can use it for a property purchase. Contribute the maximum GBP 4,000 per year. After 4 years you have GBP 16,000 plus GBP 4,000 in government bonuses — GBP 20,000 towards your deposit. The LISA counts within your GBP 20,000 annual ISA allowance, so plan your ISA usage accordingly.
Shared Ownership and Other Routes
If a full purchase feels out of reach, shared ownership lets you buy 25 to 75 percent of a home and rent the rest from a housing association. The deposit requirement is much lower and you can staircase up to full ownership over time. The First Homes scheme offers 30 to 50 percent discounts on new-build properties for eligible first-time buyers. Check eligibility on your local council website. Model your mortgage payments with our mortgage calculator.
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Frequently Asked Questions
Is the Lifetime ISA worth it for first-time buyers?
Absolutely. The government adds 25 percent on contributions up to GBP 4,000 per year. That is GBP 1,000 free money annually. Over 4 years of maximum contributions, you accumulate GBP 16,000 plus GBP 4,000 in bonuses plus interest. The only catch: withdrawal for non-property purposes incurs a 25 percent penalty.
What is shared ownership?
You buy 25 to 75 percent of a property and pay rent on the rest. The deposit is typically 5 to 10 percent of your share only. On a GBP 300,000 home buying a 50 percent share, your deposit is GBP 7,500 to 15,000 instead of GBP 15,000 to 30,000. You can staircase (buy more shares) later.
How much deposit do first-time buyers need?
Minimum 5 percent with government-backed 95 percent mortgage schemes. Standard is 10 to 15 percent for the best rates. On a GBP 250,000 property: GBP 12,500 (5 percent) to GBP 37,500 (15 percent). A 10 percent deposit gets significantly better interest rates than 5 percent.
Do first-time buyers pay stamp duty?
First-time buyers in England pay zero stamp duty on the first GBP 425,000. Between GBP 425,001 and 625,000, they pay 5 percent. Properties above GBP 625,000 do not qualify for first-time buyer relief.
What counts as a first-time buyer?
You must never have owned or part-owned a residential property anywhere in the world. This applies to each buyer — if buying with a partner who has previously owned, you lose the first-time buyer stamp duty relief for the entire purchase.