A Guide to Affordable Housing Schemes

Finding a home you can afford involves more than comparing deposits. You may also need to consider mortgage payments, rent, service charges, repair responsibilities and restrictions that could affect how you use or sell the property.

This guide explains the main affordable homeownership and below-market rent options available in England. It covers Shared Ownership, London Living Rent, First Homes, Rent to Buy and specialist routes for older people and people with long-term disabilities. It also explains savings and mortgage products that may support a home purchase.

Different schemes and rules apply in Wales, Scotland and Northern Ireland. London Living Rent is only available in London, while the Lifetime ISA and Mortgage Guarantee Scheme are available across the UK.

Guinness Homes offers Shared Ownership homes at selected developments, subject to eligibility and availability.

Eligibility and availability: Meeting the general conditions for a scheme does not guarantee that a suitable home, tenancy or mortgage will be available. Rules, limits and property terms can change, so check the conditions for the home you are considering.

How we source this guide: Scheme rules and figures are based on publicly available first-party information from GOV.UK, Homes England, HM Treasury and London City Hall. Where a scheme is administered locally, check the rules published by the council responsible for the development.

Before making a decision

This guide provides general information rather than personal legal, tax, mortgage or financial advice.

Before committing to a home:

• ask for all relevant property and cost information;
• consider both the upfront and ongoing costs;
• appoint a solicitor or licensed conveyancer to explain the legal documents; and
• consider speaking to an authorised mortgage adviser about borrowing and ongoing affordability.

What replaced Help to Buy?

No single product directly replaced the Help to Buy: Equity Loan in England.

Current alternatives work in different ways:

• Shared Ownership lets you buy part of a home and pay rent on the rest.
• First Homes allows eligible first-time buyers to buy a whole home at a discount.
• Rent to Buy and London Living Rent provide homes at below-market rent while eligible tenants save.
• A Lifetime ISA provides a government bonus on eligible savings.
• The Mortgage Guarantee Scheme supports participating lenders offering certain mortgages with a deposit as small as 5%.

The right route will depend on your location, income, savings, housing needs and ability to meet the ongoing costs. An option that reduces the deposit will not necessarily provide the lowest total monthly cost.

Shared Ownership

Under Shared Ownership, you buy a share between 10% and 75% of a home’s full market value and pay rent to a housing provider on the remaining share. Shares are usually offered from 25%, although a 10% initial share is available on some homes.

Find out how Shared Ownership works with Guinness Homes.

The share offered to you will depend on the home, the Shared Ownership model and an affordability assessment. The assessment considers your income, savings, debts, household spending and expected housing costs.

If the assessment shows that you can afford a larger share, you may not be able to choose the smallest share advertised.

Who can buy through Shared Ownership?

Your household income must usually be:

• £80,000 a year or less outside London; or
• £90,000 a year or less in London.

You must also be unable to afford all the deposit and mortgage payments for a home that meets your needs.

Shared Ownership is not restricted to first-time buyers. Under the Shared Ownership eligibility rules, you may also qualify if you:

• previously owned a home but cannot afford to buy one now;
• already own a Shared Ownership home and want to move;
• are forming a new household, such as after a relationship breakdown; or
• own a home but cannot afford a replacement that meets your needs.

Some homes have local residency, employment or connection requirements.

If you own a home when you apply, you must normally have accepted an offer to sell it. The sale must complete on or before the date you complete your Shared Ownership purchase.

How do the deposit and monthly payments work?

You buy your share with a mortgage, savings or a combination of both. The deposit is usually between 5% and 10% of the value of the share rather than the full market value of the home.

Depending on the property, your regular housing costs may include:

• a mortgage on the share you own;
• rent on the share owned by the housing provider;
• a service charge;
• an estate charge;
• a management fee;
• contributions to a reserve fund;
• buildings insurance contributions;
• council tax and household bills; and
• repair and maintenance costs.

The official guidance on Shared Ownership costs explains the costs that may apply. The housing provider should give you key information about the home and a summary of its costs before you reserve it.

Assess the mortgage, rent, service charge, estate charge and household costs as one monthly commitment. A smaller mortgage does not necessarily mean a lower total monthly cost.

What is staircasing?

Staircasing is the process of buying further shares in your home. As your ownership share rises, the rent charged on the housing provider’s share normally falls.

The increments you can buy depend on your lease and the Shared Ownership model applying to your home. Some leases allow purchases in increments of 10% or more. Some newer leases allow increments of 5% or more, while certain eligible leases allow annual purchases of 1% during the first 15 years.

The price of a further share is normally based on the value of the home at the time. Standard staircasing can involve valuation, legal, mortgage and administration costs.

Check the Shared Ownership staircasing rules and your lease before deciding to buy another share.

Who pays for repairs?

Shared owners generally pay for repairs and maintenance inside their homes, regardless of the share they own.

For flats, the building owner normally arranges external and structural work. Eligible costs may be recovered through service charges or reserve funds.

A new-build warranty may cover certain structural problems. Some newer Shared Ownership leases also include an initial repair period during which the housing provider is responsible for specified repairs.

The arrangements depend on the home and lease. Check the key information document, warranty and lease rather than assuming that the housing provider will pay because it owns part of the property.

The Shared Ownership repairs guidance explains how responsibilities can differ.

Information to check before reserving

Before reserving a Shared Ownership home, check:

• the full market value;
• the share you will buy;
• the price of that share;
• the required deposit;
• the estimated monthly rent;
• the current service charge;
• any estate charge, management fee or reserve-fund contribution;
• what each charge pays for;
• how the rent and charges are reviewed;
• the length of the lease;
• which Shared Ownership model applies;
• whether an initial repair period applies;
• your repair and maintenance responsibilities;
• the available staircasing options;
• restrictions on alterations and subletting;
• the procedure for selling the home; and
• reservation, legal, mortgage and administration fees.

Ask your solicitor or licensed conveyancer to explain anything in the lease or property documents that you do not understand.

Possible benefits of Shared Ownership

• A deposit based on your share: The deposit is normally calculated against the share you buy rather than the home’s full market value.
• A smaller initial purchase: Buying a share may provide a route into homeownership when buying a suitable home outright is unaffordable.
• New and existing homes: Shared Ownership is available on selected new-build and resale properties.
• The option to increase ownership: Your lease may allow you to buy further shares later.

Points to consider

• Several housing payments may apply: A smaller mortgage does not remove rent, service charges or other costs.
• Shared Ownership is leasehold: The lease sets out your rights, responsibilities and restrictions.
• Charges can change: Rent, service charges and estate charges may increase.
• You normally pay for repairs: Your responsibilities are not necessarily proportionate to the share you own.
• Staircasing has costs: Buying another share may require a valuation, legal work and changes to your mortgage.
• Selling follows a set process: Your housing provider may have an initial period in which it can find an eligible buyer.
• A mortgage is not guaranteed: You must meet the requirements of a lender willing to lend on the property.

Explore Guinness Homes developments

Shared Ownership resales

A Shared Ownership resale is a home being sold by its current shared owner. You normally buy the seller’s share and pay rent to the housing provider on the remaining share.

The Shared Ownership scheme guidance confirms that eligible buyers can purchase existing properties through a resale scheme. The standard Shared Ownership income and affordability conditions apply.

The price of the share is based on the home’s current market valuation. The share offered will usually be the share owned by the seller.

Why consider a resale?

A resale may give you a choice of:

• an established home and neighbourhood;
• locations without current new-build developments;
• properties with an existing service-charge history; and
• homes that can be viewed in their current condition before buying.

A resale is not automatically cheaper or quicker to buy than a new-build home.

What should you check?

Ask your solicitor or licensed conveyancer to review:

• the remaining length of the lease;
• the current rent and service charges;
• recent service-charge accounts;
• any planned major work;
• any reserve or sinking fund;
• restrictions in the lease;
• the process and fees involved in a future sale; and
• any remaining new-build warranty.

Consider arranging an appropriate survey to help you understand the property’s condition.

Search Guinness Homes Shared Ownership resales

London Living Rent

London Living Rent provides below-market rented homes for eligible Londoners who want to build savings towards buying a home through Shared Ownership.

Rent benchmarks are based on one-third of average local household incomes and are adjusted by area and number of bedrooms. London City Hall updates the benchmark levels each year.

Who can apply for London Living Rent?

You must:

• live or work in London;
• have a household income of no more than £75,000;
• not own another residential home;
• be unable to buy a suitable home, including through Shared Ownership, in your local area; and
• have a formal tenancy or be living with family or friends because you are struggling with housing costs.

The housing provider will also consider whether you can afford the rent. Property-specific or local priority conditions may apply.

How does London Living Rent work?

London Living Rent homes are offered with tenancies of at least three years. The below-market rent is intended to give eligible tenants more room to save towards a deposit.

You may be given the option to make an offer to buy your home through Shared Ownership during the tenancy. This is not a guaranteed purchase.

You would still need to meet the relevant Shared Ownership, affordability and mortgage conditions when you are ready to buy.

Points to consider

• London Living Rent is only available in London.
• Homes are limited to participating developments.
• You must meet the housing provider’s affordability checks.
• Rent and other charges may change under the terms of your tenancy.
• A future purchase depends on the property terms, your eligibility, your finances and mortgage availability.
• If your aim is to buy, you will need a practical savings plan.

Learn about London Living Rent

Other options you may want to explore

The following routes may be available through councils, housing providers, developers, savings providers or mortgage lenders.

Detailed eligibility must be checked with the organisation administering the particular scheme or property.

First Homes

The First Homes scheme allows eligible first-time buyers in England to purchase a new or previously occupied First Homes property for between 30% and 50% less than its market value.

You own the whole home. The discount is not a separate equity loan that must be repaid. Instead, the percentage discount remains attached to the property and normally applies when the home is sold.

First Homes eligibility

Every purchaser must:

• be aged 18 or over;
• be a first-time buyer;
• use the property as their only or main home;
• have a combined household income of no more than £80,000, or £90,000 where the property is in London; and
• obtain a mortgage or qualifying home purchase plan covering at least half of the discounted purchase price.

Councils can initially prioritise applicants who have a local connection, are key workers or meet a local income condition.

Certain members and veterans of the armed forces, and some family members, are exempt from local connection and key-worker conditions.

How does the discount work?

The discount must be at least 30%. A council can require a discount of 40% or 50% where this is supported by local need.

On its first sale, the price after the discount must normally be no more than:

• £250,000 outside Greater London; or
• £420,000 in Greater London.

A council can set a lower local price cap.

When you sell, the home is normally valued and the same percentage discount is applied to its value at that time. The buyer will usually need to meet the relevant First Homes eligibility conditions.

Read the First Homes resale rules before deciding whether the arrangement is suitable for your longer-term plans.

Points to consider

• First Homes are only available in selected locations and developments.
• Local criteria may affect who receives priority.
• The discount limits the price you can normally receive when you sell.
• A future purchaser will usually need to meet First Homes eligibility rules.
• You are responsible for the mortgage, repairs and other costs of owning the whole home.
• You do not have to sell solely because your income or employment circumstances change after buying.

Rent to Buy

Rent to Buy provides eligible tenants in England outside London with homes at a discount that is normally 20% below market rent. The purpose is to give tenants time to save towards a deposit.

London has the separate London Living Rent product.

Rent to Buy eligibility

You must normally:

• be in full-time or part-time employment;
• be a first-time buyer; and
• be able to pay the rent while saving towards a deposit.

You may also qualify if you are returning to homeownership after a relationship breakdown. The landlord may check your income and credit history.

Read the Rent to Buy eligibility conditions before applying.

How long can you rent for?

Under the national Rent to Buy guidance, the initial tenancy is for up to two years. If you need more time to save, the landlord may agree to extend it.

You can buy a home once you have saved enough deposit and can obtain a mortgage.

Can you buy the home later?

You may be able to buy the home you rent if the landlord agrees. You may also be able to buy it through Shared Ownership if the landlord agrees and you meet the relevant conditions.

Renting the property does not give you an automatic right to purchase it. You can use the money saved towards a different home instead.

Before accepting a property, check:

• the tenancy length;
• how the rent can change;
• what happens when the initial tenancy ends;
• whether the landlord expects to sell the home; and
• whether buying the rented property could be an option.

What is Intermediate Rent?

Intermediate Rent is a broad description for homes offered below local market rent. It is not one national scheme with a single set of customer rules.

London Living Rent and Rent to Buy are forms of intermediate housing with their own published conditions. Other Intermediate Rent homes may have different:

• income limits;
• rent-setting methods;
• tenancy lengths;
• local priorities;
• affordability requirements; and
• purchase options.

Do not assume that an Intermediate Rent property includes a route into homeownership. Check the terms for the individual home.

Discount Market Sale

Discount Market Sale is a locally administered form of affordable homeownership under which an eligible customer buys a whole property below its full market value.

There is no single national set of customer rules. The discount, income conditions, local connection requirements, price limits and resale restrictions are normally set by the relevant council and the legal agreement attached to the development.

The percentage discount will usually remain attached to the property when it is sold. This can affect who can buy the home and the price you can receive.

Before applying:

• check the affordable housing guidance published by the council responsible for the development;
• ask how your eligibility will be assessed;
• check how the discounted price was calculated;
• find out how the property can be sold later; and
• ask your solicitor or licensed conveyancer to explain the legal restrictions.

Specialist Shared Ownership options

Home Ownership for People with a Long-Term Disability

Home Ownership for People with a Long-Term Disability, known as HOLD, is a form of Shared Ownership for someone with a long-term disability who cannot find a suitable home through the standard scheme.

A participating HOLD provider purchases an approved property from the open market and sells a share to the customer.

Who may qualify for HOLD?

You may be eligible if:

• you have a long-term disability as defined by the Equality Act 2010;
• standard Shared Ownership homes do not meet your needs or are not within a reasonable distance of your support network;
• your household income is £80,000 a year or less, or £90,000 in London;
• you cannot afford all the deposit and mortgage payments for a suitable home;
• you meet one of the standard Shared Ownership purchaser conditions; and
• a HOLD provider operates in the area where you want to buy.

The share you can buy is based on your financial circumstances and will be between 10% and 75% of the home’s full market value.

The property can be new or existing, but it must meet the provider’s condition, valuation, warranty and lease requirements.

Adaptation costs are not automatically covered and may require separate funding, permission and assessment.

Older Persons Shared Ownership

Older Persons Shared Ownership, known as OPSO, is a form of Shared Ownership for people aged 55 or over.

The property must be advertised as an OPSO home. You must also meet the Shared Ownership income and affordability conditions.

The share you can buy is based on your financial circumstances and will be between 10% and 75%. You pay rent on the housing provider’s share until you own 75%.

Once you own 75%, no rent is payable on the remaining 25%. Service charges, repairs and other property costs can still apply. You cannot normally staircase above 75%.

Products that may help with a home purchase

The following products do not provide a discounted or part-owned home. They may help an eligible customer save towards a deposit or access a mortgage with a smaller deposit.

Lifetime ISA

A Lifetime ISA is a savings or investment account that can be used towards an eligible first-home purchase or saved for later life.

You can contribute up to £4,000 in each tax year. The government adds a 25% bonus to eligible contributions, worth up to £1,000 a year.

Your first payment must be made before you turn 40. You can continue contributing and receiving the bonus until you turn 50.

Using a Lifetime ISA to buy a home

To make a qualifying first-home withdrawal:

• you must be a first-time buyer;
• the property must cost £450,000 or less;
• at least 12 months must have passed since your first Lifetime ISA payment;
• you must be buying with a mortgage;
• a solicitor or licensed conveyancer must receive the money from the account provider; and
• you must intend to occupy the home as your main residence.

If two first-time buyers each have a Lifetime ISA, they can both use their savings and government bonuses if they each meet the conditions.

A 25% withdrawal charge normally applies if money is taken out for a reason other than a qualifying first-home purchase, reaching age 60 or terminal illness.

Read the Lifetime ISA withdrawal rules before relying on the account for a purchase.

If you choose a stocks and shares Lifetime ISA, the value of your investments can fall as well as rise.

Mortgage Guarantee Scheme

The permanent Mortgage Guarantee Scheme supports participating lenders offering eligible mortgages at between 91% and 95% loan-to-value.

The current scheme became permanently available in July 2025. Eligible first-time buyers and home movers may be able to buy a home with a deposit as small as 5%. The scheme operates throughout the UK.

Individual lenders decide whether to participate and set their own lending conditions.

The government guarantee protects the lender against part of its potential loss. It does not protect the borrower from mortgage arrears, falling property values or repossession.

The £600,000 property limit applied to the previous Mortgage Guarantee Scheme, which closed to new mortgages on 30 June 2025. It should not be assumed to apply to the permanent scheme introduced in July 2025.

Points to consider

• You must pass the lender’s income, affordability, credit and property checks.
• A 5% deposit does not guarantee mortgage approval.
• Available rates and products may differ from those offered with a larger deposit.
• A larger mortgage means borrowing more and paying interest on a higher balance.
• If property prices fall, you could have little equity or owe more than the property is worth.
• You remain responsible for repaying the full mortgage.

Your home may be repossessed if you do not keep up with your mortgage payments.

Costs to consider before buying

The deposit or discounted purchase price is only part of the cost of buying and owning a home.

Depending on the scheme and property, you may need to budget for:

• a reservation fee;
• mortgage advice and arrangement fees;
• lender valuation fees;
• an independent survey;
• solicitor or licensed conveyancer fees;
• searches and HM Land Registry charges;
• Stamp Duty Land Tax, where applicable;
• mortgage repayments;
• rent on a share you do not own;
• service charges;
• estate charges;
• management fees;
• buildings and contents insurance;
• council tax;
• utilities and household bills;
• repairs and maintenance;
• contributions towards major works;
• moving and furnishing costs;
• valuation and legal fees when staircasing; and
• administration and legal costs when selling.

Ask for a complete schedule of the charges associated with the property. Read the lease, tenancy agreement and key information documents before paying a reservation fee or committing to the home.

Consider how your finances would cope if:

• mortgage rates increased;
• rent or service charges rose;
• the property needed an unexpected repair;
• your income fell;
• your household circumstances changed; or
• you were unable to move or increase your ownership share when planned.

How to apply for an affordable home

The process depends on the scheme, provider and property. It may include the following steps:

1. Find a property offered through a scheme for which you may qualify.
2. Read the property details, eligibility rules and expected charges.
3. Check the location, household, income and homeownership conditions.
4. Complete an application or registration form.
5. Provide evidence of your identity, income, savings, employment and housing circumstances.
6. Complete the required eligibility and affordability assessments.
7. Obtain a mortgage agreement in principle if you need a mortgage.
8. Review the property’s key information and cost documents.
9. Appoint a solicitor or licensed conveyancer.
10. Complete the provider’s reservation and approval process.
11. Receive a formal mortgage offer and legal advice before exchanging contracts.
12. Complete the purchase and arrange payment of the ongoing costs.

The order and documents required will differ between schemes and providers. Passing an initial assessment does not reserve a home or guarantee a mortgage.

Opening a Lifetime ISA and applying for a mortgage follow separate processes. Check the account provider’s or lender’s conditions.

Which affordable housing scheme is best?

There is no single option that will suit everyone.

Compare:

• the homes available in your chosen area;
• the required deposit;
• the total monthly cost;
• the length and conditions of any lease;
• repair responsibilities;
• restrictions on letting or selling;
• options for increasing ownership; and
• your likely housing needs over the next few years.

A solicitor or licensed conveyancer can advise on the legal documents. An authorised mortgage adviser can help you assess borrowing and affordability.

Find a home with Guinness Homes

Guinness Homes offers Shared Ownership homes at selected developments.

You can also search for existing homes being sold by Guinness Homes shared owners.

• Explore Guinness Homes developments
• Find out how Shared Ownership works
• Search Shared Ownership resale homes

Before choosing a scheme

Affordable homeownership and below-market rent options can help some households find a suitable home, but each route has different costs, conditions and restrictions.

Before applying:

• check the current rules for the specific property;
• compare the total monthly housing cost;
• ask how rent and charges are reviewed;
• understand your repair responsibilities;
• check what happens if you want to move or sell;
• confirm whether a future purchase or staircasing option is guaranteed;
• consider whether the home could meet your needs for several years; and
• seek independent legal and financial advice.

Visit GOV.UK’s affordable homeownership guidance for current government information.

Published by Guinness Homes
Information reviewed: August 2026