Answers · UK 2025/26
How does the Scottish shared equity (LIFT) scheme work?
The Scottish Government's Low-cost Initiative for First Time Buyers (LIFT) shared equity scheme lets eligible buyers purchase a home with the Scottish Government taking an equity stake — typically 10-40% — meaning the buyer needs a smaller mortgage and deposit for their remaining share, with no rent charged on the government's share (unlike shared ownership).
Full answer
LIFT (Low-cost Initiative for First Time Buyers) is the umbrella term for Scotland's shared equity home ownership schemes, primarily the Open Market Shared Equity (OMSE) scheme for buying an existing home on the open market, and the New Supply Shared Equity (NSSE) scheme for buying specific new-build homes built with this scheme in mind. Under either version, the Scottish Government (via the Scottish Government's appointed delivery partners) takes an equity stake in the property alongside the buyer — typically ranging from 10% up to 40% depending on the scheme and the buyer's income and needs, with priority often given to social rented sector tenants, disabled people needing adapted housing, and members of the armed forces or veterans under NSSE. Unlike shared ownership schemes common in England and Wales, LIFT buyers do not pay rent on the retained government equity share — the buyer's only ongoing cost relating to the property is the mortgage on their own purchased share, plus standard running costs, making it a genuinely different (and for many, more attractive) model since there is no separate rental payment on top of the mortgage. The government equity share is not repaid through instalments over time by default — it remains a genuine equity stake, meaning the government benefits (or loses) proportionally alongside the buyer if the property's value rises or falls, and is normally only repaid (the buyer staircasing to 100% ownership) or realised (the government share paid back) when the property is eventually sold, or the buyer chooses to buy out the government's share earlier. Eligibility for OMSE is generally restricted to specific priority groups (rather than open to all first-time buyers as with some English schemes) and is means-tested against household income and existing savings, checked to ensure the buyer genuinely could not afford to buy on the open market without the scheme's help. Use the Mortgage Affordability calculator to estimate what you could borrow against your own retained share of the purchase price.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.