Your First Home vs Shared Ownership: Which Scheme Is Right?

What is the Government’s New ‘Your First Home’ Scheme?

If you’re hoping to buy your first home, this year’s Autumn Budget could bring some welcome news. The government has confirmed details of a new initiative called Your First Home, aimed at helping more first-time buyers get onto the property ladder.

How does Your First Home compare with Shared Ownership?

Both schemes aim to make homeownership more accessible, but they work in very different ways.

Key differences at a glance

	Your First Home available from February 2027 *	Shared Ownership – available now
Ownership	You own 100% of the property from day one	You buy a share of your selected home and pay a subsidised rent on the remaining share
Deposit	2.5% of the full purchase price	Starting from 5%
Equity Loan	20% government loan, interest free for 5 years	None
Rent	None	A subsidised rent payable on the share you don’t own
Mortgage	Taken out on the property value (less equity loan support) mortgage covering 77.5% of the value	Taken out on your purchased share
Property Type	New-build homes	New-build and pre-owned (resale) Shared Ownership homes
Increasing Ownership	Not applicable	You can buy more shares at any time through staircasing and own outright Learn more
Eligibility	First-time buyers with no property to sell and no existing home ownership	First-time buyers and those who have sold, or do not currently own a property
Income Threshold	Combined household income up to £110,000 around London and £140,000 in London (different terms for other parts of UK tba)	Currently £80,000 outside London and £90,000 in London. Caps will lift to £90,000 outside London and £110,000 in London from 2027
Best Suited For	Buyers wanting full ownership with deposit support	Buyers looking for a lower initial deposit and flexibility to increase ownership over time
Maximum property value	Inner London £650,000, outer London £500,000. (Rest of England variable)	None

Which option is right for you?

Ultimately, the answer depends on your circumstances.

For example, if your biggest challenge is saving a deposit, but you’re comfortable taking on a possibly larger mortgage, the proposed Your First Home scheme could help you achieve full homeownership.

On the other hand, many buyers choose Shared Ownership because it offers one of the most established and accessible routes into home ownership. Buyers can purchase a share of a home rather than its full value upfront, which significantly reduces the deposit they need and the size of their mortgage. They are leaseholders and can decorate their home as they wish. This helps more people buy a home sooner, even when they cannot yet afford to buy outright.

Why buyers choose Shared Ownership

In addition, many Shared Ownership homeowners also have the option to increase their share in the home at any time convenient for them through a process known as staircasing, giving them greater flexibility as their financial circumstances change.

For instance, Alina purchased her home through Shared Ownership and says:

Alina Success Story

“I think Shared Ownership is an amazing scheme. It’s so hard for young people. People think you need £40,000 saved, but that’s not always the case if you buy with Shared Ownership. When our landlord decided to sell, our whole future felt uncertain. Now we finally feel secure. For the first time, we know this is our home and we are in control.”

Alina, homeowner at Eastman Village

Read story

Explore your Shared Ownership options

Before making a decision, it’s worth comparing both options to understand which best suits your budget and long-term plans. You can learn more about Shared Ownership, read our Shared Ownership FAQs, or browse our Shared Ownership homes.

Neither option is necessarily better than the other. They’re simply designed to help different buyers overcome different barriers to homeownership. The right choice will depend on your individual circumstances and affordability goals.

What we know so far

Based on the information released so far, the government has announced that the proposed scheme will:

Be available to first-time buyers in England.
Support purchases of eligible new-build homes.
Require a deposit of around 2.5%.
Include a government-backed equity loan worth up to 20% of the property value.
Have household income and property price limits, with details still to be confirmed.

In the meantime, Shared Ownership is available today across a range of Hyde New Homes developments. Explore our current Shared Ownership homes or speak to our sales team to find out which route to homeownership could be right for you.

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This article is based on current UK Government announcements regarding the proposed Your First Home scheme. Some details remain subject to confirmation and may change.

Your First Home scheme FAQs

Is the Your First Home scheme available on developments?

The UK government has announced that the Your First Home scheme (different to First Homes scheme) will be open for pre-registration by the end of 2026, with applications open in February 2027. It is expected that the first property sales under the scheme will be April 2027. Price caps apply in each area at £650,000 in inner London and £500,000 in Outer London, with local median caps elsewhere due to be announced shortly. The scheme is only available for new build properties. Please check individual property listings or contact our sales team to find out whether the scheme is available on your chosen home.

How does the Your First Home scheme work?

The scheme is specifically for first time buyers purchasing a new build home, but who may not have a large deposit to get started. Eligible buyers could put down a 2.5% deposit and have access to a government backed equity loan of up to 20% of the property’s value with a mortgage covering the remainder. This is interest free for the first five years, following which interest payments apply. For more information, visit the government website.

Who is eligible for Your First Home scheme?

Which scheme is right for me?

The best option will depend on your personal circumstances, the price of the home, your savings, eligibility, availability and long-term homeownership goals. Shared Ownership can help first-time buyers or those making their next move, who may not be able to afford a new-build or previously owned home outright, while the Your First Home scheme may be suitable for eligible first-time buyers who wish to purchase 100% of a selected new-build home.

It’s also important to consider the ongoing monthly costs of each option. With Your First Home, once the 2.5% deposit and 20% equity loan have been secured, you’ll typically have a 77.5% repayment mortgage. This can result in higher mortgage repayments than Shared Ownership, where you purchase a share of the home and pay subsidised rent on the remaining share.

One of the benefits of Shared Ownership is the flexibility to buy additional shares in your home over time, eventually increasing your ownership and potentially owning your home outright. This process is known as Staircasing.

Our sales team can help you understand the options available and determine which route may be right for you.

What is the difference between Shared Ownership and the Your First Home scheme?

With Shared Ownership, you buy a share of your home and pay a subsidised rent on the remaining share. Because the deposit is based on the share you buy, it enables first time buyers or those looking for that next move to enter the market and buy a new build or resales home with a lower deposit than saving to buy the home outright.

With Your First Home scheme, a 2.5% deposit and 20% government equity loan enables first time buyers to secure 100% of a new build home with a smaller deposit. The key difference is down to an individual’s personal circumstances, the type of home available, its location, price and how much deposit you’ve saved, mortgage and affordability. Our sales team can explain the schemes in more detail.

Can I use the Your First Home scheme to buy a Shared Ownership home?

Whilst both schemes are government backed; Your First Home scheme is a different scheme to Shared Ownership. Shared Ownership enables you to buy a share of your home and pay a subsidised rent on the remaining share. It is possible to buy additional shares at any time that is convenient and own your home outright – this is called Staircasing. On the other hand, Your First Home scheme enables eligible first-time buyers to purchase 100% of an eligible new-build home with support through a government equity loan. Availability and eligibility criteria apply to both schemes.