Shared Ownership vs First Homes vs Right to Buy: Which Scheme Is Your Route?

Getting onto the property ladder as a first-time buyer has never been straightforward, but there are more options available than many people realise. Below, we explain how each scheme works, who qualifies, and what to watch out for, so you can make a genuinely informed decision.

At a Glance: Scheme Comparison

	Shared Ownership	First Homes	Right to Buy
Who it’s for	First-time buyers with limited deposit	First-time buyers of new-builds	Council tenants
Discount/saving	Lower deposit needed (buy a share)	30–50% off market value	Up to £96k (£127.9k London)
Own outright?	No — share only (can staircase)	Yes	Yes (after purchase)
Pay rent?	Yes, on the unsold share	No	No
New-build only?	Often, but not always	Yes	No, your existing council home
Key catch	Service charges + ground rent	Discount tied to property on resale	Must have 3+ years as a public tenant

Shared Ownership

Shared Ownership lets you buy a portion of a property (typically between 10% and 75%) and pay a subsidised rent on the share you don’t own. Because your mortgage only covers your share, the deposit required is significantly smaller.

Key facts

• You can increase your ownership over time through “staircasing” and buying additional shares until you own 100%
• You’ll be responsible for service charges and ground rent if the property is leasehold — factor these into your budget
• You pay both a mortgage (on your share) and rent (on the remaining share) simultaneously
• Works well for those with a steady income who can’t yet save a large enough deposit to buy outright in their area

The First Homes Scheme

The First Homes scheme offers eligible first-time buyers a discount of at least 30% (and in some areas up to 50%) on the market value of a new-build home. Unlike Shared Ownership, you purchase the property outright with no rent to pay.

Key facts

• You own the property outright: no rent to pay on any remaining share
• Priority is often given to key workers (nurses, teachers, police) and local residents (eligibility varies by area)
• The discount is tied to the property permanently: when you sell, you must pass the same % discount to the next eligible buyer
• This means the property won’t grow in value at the full market rate, which is worth factoring into your long-term plans

Right to Buy

Right to Buy gives eligible council tenants the legal right to purchase their home at a significant discount. The longer you’ve been a public sector tenant, the larger your discount.

Discount by tenancy length

Years as Public Tenant	Discount (House)	Discount (Flat)
3–5 years	35%	50%
5+ years	35% + 1% per extra year	50% + 2% per extra year
Maximum	70% (subject to £96k / £127.9k cap)	70% (subject to cap)

Key facts

• You must have been a public sector tenant for at least 3 years (not necessarily in the same property)
• If you’ve previously used Right to Buy, you may still be eligible again, subject to conditions
• You’ll need a mortgage for any amount above your discount. A broker can help you understand what’s affordable
• If you sell within 10 years, you must offer the property back to the council first, or repay some of the discount

Which Scheme Is Right for You?

Your Situation	Likely Best Fit	Why
First-time buyer, limited deposit, renting privately	Shared Ownership	Lower deposit; flexibility to staircase over time
First-time buyer, looking at new-builds, key worker or local connection	First Homes	Outright ownership at a significant discount
Council tenant, settled in your home, 3+ years tenancy	Right to Buy	Substantial discount; buy the home you already live in
Council tenant but wants to move elsewhere	Shared Ownership or First Homes	Right to Buy only applies to your current council property

Each of these schemes has its own eligibility rules, local variations, and mortgage requirements. The best way to know which is available to you (and which a lender will support) is to speak to an advisor who knows the details.

Frequently Asked Questions: First-Time Buyer Schemes

Q1: Can I use a Help to Buy ISA or Lifetime ISA with these schemes?

Yes. A Lifetime ISA (LISA) can be used alongside Shared Ownership and First Homes, as long as the property meets the price cap (£450,000 for a LISA). The government bonus (up to £1,000 per year) can be used toward your deposit. It’s worth checking current LISA rules with an advisor, as caps and conditions can change.

Q2: What happens if I want to sell a Shared Ownership property?

You can sell your share at any time. The housing association typically has a nomination period (usually 8 weeks) during which they can find a buyer. If they can’t, you’re free to sell on the open market. If you own 100% through staircasing, you can sell just like any other property.

Q3: Is Right to Buy available for housing association tenants?

Not under the standard Right to Buy scheme, which only applies to council tenants. However, there is a separate Right to Acquire scheme for some housing association tenants, which offers smaller discounts. Eligibility depends on when your home was built or transferred and how long you’ve been a tenant.

Q4: Can I get a mortgage for a First Homes property?

Yes, and most high street and specialist lenders offer mortgages for First Homes properties. The discounted purchase price is used as the basis for your mortgage, and your deposit is calculated against that figure. The key is using a broker who is familiar with the scheme, as not all lenders have the same processes in place.

Q5: What is staircasing, and are there costs involved?

Staircasing is the process of buying additional shares in your Shared Ownership property over time. Each time you staircase you’ll need a new mortgage arrangement (or remortgage), a valuation of the property, and legal work, so there are costs involved. Some leases restrict how often you can staircase and the minimum percentage you can buy each time, so check your lease carefully.