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Your First Home vs Shared Ownership: which costs less?

Your First Home vs Shared Ownership compared on deposit, monthly cost, what you own and the catches, with a worked example on a £300,000 home in England.

Status: Based on the government announcement of 26 September 2026. Full rules are due at the Budget on 28 October 2026. Every figure is labelled as confirmed, announced, expected or assumed. Some figures on this page are announced or confirmed and some are our working assumptions; the calculator and the methodology page label each one.

Page last updated 27 September 2026. Assumptions are explained on the methodology page.

In short

  • Your First Home gives you the whole home for a 2.5% deposit, but the government is expected to take 20% of its future value, as under Help to Buy. Shared Ownership gives you a share, usually 25% to 75%, and you rent the rest.
  • On a £300,000 home, Your First Home costs about £1,359 a month with a £7,500 deposit. A 40% Shared Ownership share costs about £1,116 a month plus a service charge, with a £6,000 deposit.
  • Shared Ownership is running now, with an £80,000 income cap (£90,000 in London). Your First Home's income cap, price caps and interest terms come at the Budget on 28 October 2026.
  • Interest and repayment rules for Your First Home after the interest-free period are assumptions based on Help to Buy until the government publishes them.

Your First Home vs Shared Ownership: the side-by-side table

Your First Home vs Shared Ownership comes down to one trade: Your First Home lets you own the whole home with a 2.5% deposit but is expected to hand the government 20% of its future value, while Shared Ownership needs a similar or smaller deposit but you buy only a share and pay rent on the rest. On a £300,000 home, that is about £1,359 a month under Your First Home against about £1,116 a month plus a service charge for a 40% Shared Ownership share.

Your First Home was announced on 26 September 2026 and its full rules arrive at the Budget on 28 October 2026 (GOV.UK; HM Treasury). Shared Ownership is running now, with its rules on GOV.UK (GOV.UK). The table marks what we assume.

Your First HomeShared Ownership
What it isA government equity loan on a new-build homeBuying a share of a home and renting the rest
Who can use itFirst-time buyers in England under a household income cap (level due 28 October 2026)Households earning £80,000 or less (£90,000 in London) who cannot afford a suitable home outright
Deposit2.5% of the full priceUsually 5% to 10% of the share you buy
What you ownThe whole home; the government holds a loan worth 20% of its valueA leasehold share, usually 25% to 75% (10% on some homes)
Monthly costsA mortgage on 77.5% of the price; no loan interest during an initial free periodA mortgage on your share, rent on the landlord’s share, and a service charge
HomesNew builds from developers signed up to the scheme, under local price caps (levels due 28 October 2026)New builds and resales, houses and flats, from housing associations and other landlords
WhereEngland onlyEngland (Scotland, Wales and Northern Ireland run their own schemes)
Owning more laterRepay the loan in part or in full (Help to Buy allowed chunks of 10% or more; assumed here)Staircasing: extra shares of 10% or more, or 1% a year for 15 years on homes bought since 1 April 2021
SellingRepay 20% of the sale price to the government (assumed, based on Help to Buy)The landlord has 4, 8 or 12 weeks to find a buyer first; the price follows a RICS valuation
Main catchYou give up 20% of any rise in value, and interest is expected after the free periodRent only ever goes up at reviews, and you own part of a leasehold home
Status on 27 September 2026Announced; not yet openOpen now

What does each cost on a £300,000 home?

On a £300,000 new-build home, Your First Home needs £7,500 up front and about £1,359 a month, while a 40% Shared Ownership share needs about £6,000 up front and about £1,116 a month plus a service charge. Here is where every pound goes.

Your First HomeShared Ownership, 40% share
Price£300,000£300,000 home; your share is worth £120,000
Deposit£7,500 (2.5% of the price)£6,000 (5% of the share)
Government or landlord£60,000 equity loan (20%)The landlord keeps 60%, worth £180,000
Mortgage£232,500£114,000
Monthly mortgage over 25 yearsAbout £1,359 at 5% (a 77.5% mortgage)About £703 at 5.55% (a 95% mortgage on the share)
RentNoneAbout £413 a month (2.75% a year of £180,000)
Service chargeSometimes, on flats and managed estatesUsually, paid monthly
Total each monthAbout £1,359About £1,116 plus the service charge
What you ownThe whole home, with 20% of its value owed to the government40% of the home

The rates are the best fixed deals on 26 September 2026 from lenders operating across England (HomeOwners Alliance): 5% for a mortgage covering about three quarters of the price, and 5.55% for a 95% mortgage, which is what a 5% deposit on the share leaves you with. Shared Ownership mortgages come from fewer lenders and your rate may differ, so put your own quote into the Shared Ownership calculator. The rent uses the 2.75% that GOV.UK says most landlords charge, against a limit of 3% (GOV.UK).

Look at what the money buys. In month one, about £390 of the Your First Home payment pays down the mortgage (the rest is interest). In the Shared Ownership column, about £176 pays down the mortgage, about £527 is interest and £413 is rent, which buys you nothing. Shared Ownership is about £243 a month cheaper, but Your First Home builds ownership about twice as fast. Try your own figures in the Shared Ownership calculator.

What do you own with each?

Under Your First Home you own the whole home and owe the government 20% of its value; under Shared Ownership you own a leasehold share and the landlord owns the rest.

An equity loan is repaid as a percentage of value, not as the sum borrowed. If the £300,000 home is worth £330,000 when you sell, you repay £66,000; if it falls to £270,000, you repay £54,000. This is how Help to Buy worked (GOV.UK) and we assume Your First Home copies it. The repayment page runs more scenarios.

Under Shared Ownership your 40% share rises and falls with the market, and so does the price of buying more. Staircasing means buying extra shares, usually of 10% or more, at market value. Homes bought on or after 1 April 2021 also let you buy 1% a year for the first 15 years at a price tracked to the House Price Index (GOV.UK). Most homes let you staircase to 100%. Every shared ownership home is leasehold (GOV.UK).

Who can use each?

Your First Home is for first-time buyers only; Shared Ownership is for anyone under the income limit who cannot afford a suitable home outright, first-time buyer or not.

Your First Home requires a first-time buyer, a new build in England from a signed-up developer, and a household income under a cap not yet set. Local price caps are also coming (GOV.UK). The eligibility page tracks each rule as it is announced.

Shared Ownership requires a household income of £80,000 or less (£90,000 or less in London) and that you cannot afford all of the deposit and mortgage payments for a home that meets your needs. You must also be a first-time buyer, a former owner who cannot afford to buy now, forming a new household, an existing shared owner moving, or an owner who cannot afford a suitable new home. Some homes ask for a local connection (GOV.UK). Our eligibility page has the detail.

How do the costs change over time?

Your First Home gets dearer after the interest-free period; Shared Ownership gets dearer at every rent review.

For Your First Home, the government has said only that there is “an initial interest free period” (GOV.UK). Help to Buy (the 2021 to 2023 version) charged nothing for five years, then 1.75% of the amount borrowed from year six, rising every April by the Consumer Prices Index plus 2% (GOV.UK). If Your First Home copies that, the £60,000 loan in our example would cost about £88 a month in year six, on top of the mortgage, and would have to be repaid in full after 25 years, on sale, or when you pay off the mortgage. All of that is assumption until 28 October 2026; the interest page explains our reasoning.

For Shared Ownership, GOV.UK says rent “may go up when it is reviewed. It will not go down.” Leases signed since October 2023 rise by either the Retail Prices Index plus up to 0.5% or the Consumer Prices Index plus 1% each year; older leases use RPI plus 0.5% (GOV.UK). The service charge moves with the building’s costs (GOV.UK), staircasing costs a valuation each time, and selling means giving the landlord 4, 8 or 12 weeks to find a buyer first (GOV.UK).

Which is better for you?

Your First Home suits a buyer who can afford a mortgage on 77.5% of the price and wants the whole home; Shared Ownership suits a buyer who cannot, and would rather own part of a home than none. Work through these in order.

  • Can you get a mortgage of 77.5% of the price? Our calculator’s rule of thumb is 4.5 times household income (lenders assess each case individually; see the methodology page), so a £232,500 mortgage needs roughly £52,000 of income. If not, Shared Ownership’s smaller mortgage may be the only one you can get.
  • Do you expect prices to rise? Under Your First Home the government takes 20% of the rise. Under Shared Ownership you keep the gain on your share but pay more for each extra share.
  • Staying put for more than five years? Your First Home’s interest and Shared Ownership’s rent reviews both bite hardest on people who neither move nor staircase.
  • Is your income under £80,000 (£90,000 in London)? If not, Shared Ownership is closed to you. Your First Home’s cap is unknown.
  • Do you mind a leasehold share? Every Shared Ownership home is leasehold. Under Your First Home the tenure is whatever the developer sells, so check each listing.

Is Shared Ownership worth it and Your First Home pros and cons go deeper.

What to do next

Figures are illustrations, not quotes or advice. A mortgage is a loan secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

Frequently asked questions

Is Shared Ownership cheaper than Your First Home?
Month by month, usually yes, because you only have a mortgage on your share. On a £300,000 home a 40% share costs about £1,116 a month plus a service charge against about £1,359 under Your First Home. But £413 of the Shared Ownership figure is rent, which never builds ownership, and you end up owning 40% of the home rather than all of it.
Can I use Your First Home to buy a Shared Ownership home?
Nothing in the announcement suggests the two combine. Your First Home is an equity loan on a new-build home you buy outright from a developer signed up to the scheme. Help to Buy could not be combined with Shared Ownership and we expect the same here, but that is our assumption until the rules are published on 28 October 2026.
Which scheme needs the smaller deposit?
It depends on the share. Your First Home needs 2.5% of the full price, so £7,500 on a £300,000 home. Shared Ownership needs 5% to 10% of the share you buy, so a 40% share needs £6,000 to £12,000 and a 25% share needs £3,750 to £7,500.
Does Shared Ownership rent go up?
Yes, and GOV.UK says it will not go down. Leases signed since October 2023 raise rent each year by either the Retail Prices Index plus up to 0.5% or the Consumer Prices Index plus 1%. Older leases use RPI plus 0.5%. Buying more shares reduces the rent because the landlord owns less.
Do I pay stamp duty under either scheme?
Possibly. As a first-time buyer you pay no stamp duty up to £300,000 on a home you buy outright, and 5% on the part from £300,001 to £500,000. Shared Ownership has its own rules, including a choice between paying on the full value up front or in stages; see our Shared Ownership stamp duty page.

Sources

  1. GOV.UK: New first-time buyer scheme to be confirmed at Budget (MHCLG press release on Your First Home) (accessed 27 September 2026)
  2. GOV.UK: Budget to move power and money out of Westminster (HM Treasury, confirms the Budget date of 28 October 2026) (accessed 27 September 2026)
  3. GOV.UK: Shared ownership homes: buying, improving and selling (share sizes, leasehold) (accessed 27 September 2026)
  4. GOV.UK: Shared ownership, who can apply (income limits and eligible groups) (accessed 27 September 2026)
  5. GOV.UK: Shared ownership, costs (deposit of 5% to 10% of the share, service charge) (accessed 27 September 2026)
  6. GOV.UK: Shared ownership, paying rent (3% limit, most landlords charge 2.75%, rent review formulas) (accessed 27 September 2026)
  7. GOV.UK: Shared ownership, buying more shares (staircasing) (accessed 27 September 2026)
  8. GOV.UK: Shared ownership, selling your home (nomination period, RICS valuation) (accessed 27 September 2026)
  9. HomeOwners Alliance: First-time buyer mortgage rates, updated 26 September 2026 (accessed 27 September 2026)
  10. GOV.UK: Paying interest on your Help to Buy equity loan (the precedent we assume for Your First Home) (accessed 27 September 2026)
  11. GOV.UK: Help to Buy equity loan repayment guide (when the loan had to be repaid) (accessed 27 September 2026)
  12. GOV.UK: Stamp Duty Land Tax rates for residential property (first-time buyer relief) (accessed 27 September 2026)
  13. GOV.UK: Stamp Duty Land Tax on shared ownership property (market value election or paying in stages) (accessed 27 September 2026)