Comparison · Property · 2026
First Homes Scheme vs Shared Ownership UK 2026: First-Time Buyer Routes Compared
First Homes and Shared Ownership are both aimed at first-time buyers priced out of the open market, but they work in fundamentally different ways — full ownership at a permanent discount versus part ownership with rent on the rest. This guide compares both for 2026.
TL;DR - 30-Second Summary
- - First Homes: 100% ownership at a 30%+ permanent discount to market value, no rent
- - Shared Ownership: buy 10–75% share, pay rent on the rest, staircase over time
- - First Homes resale is restricted to eligible first-time buyers at the same discount
- - Availability of First Homes varies by development; Shared Ownership is more widely available
Side by Side
| Feature | First Homes | Shared Ownership |
|---|---|---|
| Ownership | 100% from day one | 10–75% initially, can staircase |
| Rent payable | None | Yes, on unowned share |
| Discount | 30%+ of market value, permanent | Effective discount via smaller share bought |
| Resale | Restricted to eligible first-time buyers | Open market once staircased to 100% |
| Availability | Varies by development | Widely available via housing associations |
Verdict
First Homes suits buyers who want full ownership immediately and are comfortable with a resale restriction to future first-time buyers. Shared Ownership suits buyers who cannot afford even a discounted full mortgage and want to grow their ownership share gradually as their income allows, accepting rent on the unowned portion in the meantime. Check which schemes are actually available in your target area — First Homes allocation depends on specific developments, while Shared Ownership is offered more consistently by housing associations nationwide.