Help to Buy vs Shared Ownership: Which Scheme Is Right for You?
A side-by-side comparison of the UK's two biggest homeownership schemes
If you’re a first-time buyer in the UK, you’ve probably come across two main government-backed schemes: Help to Buy and shared ownership. While both aim to help people get on the property ladder, they work very differently. This guide explains the key differences so you can decide which is right for you — or whether neither fits your situation.
What Is Help to Buy?
The Help to Buy: Equity Loan scheme (England) allowed first-time buyers to purchase a new-build home with just a 5% deposit. The government provided an equity loan of up to 20% (40% in London) of the property’s purchase price, interest-free for the first five years.
Important: The Help to Buy: Equity Loan scheme in England closed to new applications in October 2022, with all completions required by March 2023. If you’re reading this in 2026, you cannot apply for a new Help to Buy equity loan. However, existing Help to Buy homeowners still have obligations, and the scheme’s legacy affects the market.
What replaced Help to Buy?
There is currently no direct replacement for Help to Buy in England. However, alternatives include:
- Shared ownership (still active and expanding)
- First Homes scheme — new-build homes sold at a 30–50% discount to first-time buyers
- Lifetime ISA — government bonus of 25% on savings up to £4,000/year for a house deposit
In Wales, the Help to Buy – Wales scheme continues to operate.
What Is Shared Ownership?
Shared ownership lets you buy a share of a property (typically 25%–75%) and pay rent on the rest to a housing association. Over time, you can buy more shares (“staircase”) until you own 100%.
Unlike Help to Buy, shared ownership:
- Is still available across the UK
- Applies to new-build and resale properties
- Involves paying rent on the share you don’t own
- Has no time-limited interest-free period to worry about
For a full overview, read our shared ownership scheme guide.
Help to Buy vs Shared Ownership: Side-by-Side Comparison
| Feature | Help to Buy (Equity Loan) | Shared Ownership |
|---|---|---|
| Status (2026) | Closed (England), active (Wales) | Active UK-wide |
| Property type | New-build only | New-build and resale |
| Deposit required | 5% of full price | 5–10% of your share |
| Government loan | 20% equity loan (40% London) | None — you pay rent on unowned share |
| Mortgage | On 75% of full price | On your share only |
| Rent | None | Yes — on unowned share |
| Income limit | £80,000 (was in England) | £80,000 (£90,000 London) |
| Price cap | Regional caps applied | Varies by housing association |
| Interest after 5 years | Yes — rises annually | N/A |
| Staircasing | Repay equity loan (at current value) | Buy more shares over time |
| Selling | Open market (repay equity loan) | Nomination period, then open market |
Cost Comparison Example
Let’s compare both schemes for a £300,000 new-build home:
Help to Buy (if it were still available)
| Item | Amount |
|---|---|
| Deposit (5%) | £15,000 |
| Government equity loan (20%) | £60,000 |
| Mortgage (75%) | £225,000 |
| Monthly mortgage (5%, 25 years) | ~£1,316 |
| Monthly equity loan fee (years 1–5) | £0 |
| Monthly equity loan fee (year 6+) | From £87.50, rising |
| Total monthly cost (years 1–5) | ~£1,316 |
| Total monthly cost (year 6+) | ~£1,400+ |
Shared Ownership (25% share)
| Item | Amount |
|---|---|
| Deposit (10% of share) | £7,500 |
| Mortgage (your share minus deposit) | £67,500 |
| Monthly mortgage (5.5%, 25 years) | ~£414 |
| Monthly rent (2.75% of £225,000 ÷ 12) | ~£516 |
| Service charge | ~£150 |
| Total monthly cost | ~£1,080 |
In this example, shared ownership has a lower upfront deposit (£7,500 vs £15,000) and lower monthly costs initially — but you’re building equity on only 25% of the property rather than 100%.
Which Scheme Is Better for You?
Shared ownership might be better if:
- You have a smaller deposit available
- You want lower monthly payments initially
- You’re comfortable with gradually increasing your share over time
- You’re looking at resale properties (not just new-builds)
- You earn below the income limits
Help to Buy was better if (for existing holders):
- You could afford a 5% deposit on the full price
- You wanted to own 100% from day one (minus the equity loan)
- You planned to repay the equity loan within 5 years to avoid interest
- You were buying a new-build specifically
What If I Already Have a Help to Buy Equity Loan?
If you bought through Help to Buy and are considering your options:
- Repay the equity loan — you’ll owe a percentage of the current property value, not the original amount
- Remortgage — you may be able to remortgage to repay the equity loan
- Sell and move to shared ownership — if you can no longer afford the equity loan repayments, shared ownership could be an alternative for your next home
Frequently Asked Questions
Can I switch from Help to Buy to shared ownership?
You can’t directly convert, but you can sell your Help to Buy home (repaying the equity loan) and then purchase a shared ownership property separately.
Is shared ownership better than Help to Buy?
Neither is universally better — it depends on your finances, deposit size, and preferences. Shared ownership requires less upfront but has ongoing rent. Help to Buy required a larger deposit but gave full ownership from day one.
What government schemes are available for first-time buyers in 2026?
In 2026, the main schemes are shared ownership, First Homes, and the Lifetime ISA. Help to Buy equity loans closed in England in 2022 but continue in Wales.
Try our shared ownership calculator to estimate what your monthly costs would look like, or read our shared ownership affordability guide to check your eligibility.