Scottish Government & UK Schemes for First-Time Buyers (2026 Update)

★ Key Takeaways

• LIFT (Low-cost Initiative for First Time Buyers) is the main Scottish Government scheme currently available – offering shared equity where the government contributes 10-40% of the property price
• Priority groups include social renters, disabled people, armed forces personnel, bereaved partners, and those aged 60+ – but anyone can apply
• Help to Buy Scotland and the First Home Fund have both closed – don't waste time searching for these
• First-time buyers in Scotland pay 0% LBTT on properties up to £175,000 – a saving of up to £600 compared to home movers
• Deposit Unlock remains available for new build purchases with just 5% deposit through participating builders

Buying your first home in Scotland can feel daunting, especially when you're trying to piece together your deposit requirements. The good news is that the Scottish Government and various UK-wide initiatives offer support specifically designed to help first-time buyers get on the property ladder.

However, the landscape has changed significantly in recent years. Some popular schemes have closed, while others remain available with updated criteria. In this 2026 guide, I'll walk you through exactly what's available, what's closed, and how to make the most of the support on offer.

If you've been researching government help for first-time buyers, you may have come across several scheme names. Let me clear up the confusion about what's actually available today:

• LIFT (Low-cost Initiative for First Time Buyers) – CURRENTLY AVAILABLE
• Deposit Unlock – CURRENTLY AVAILABLE (new builds only)
• LBTT First-Time Buyer Relief – CURRENTLY AVAILABLE
• Help to Buy Scotland – CLOSED
• First Home Fund – CLOSED (ran until 2021)

The Low-cost Initiative for First Time Buyers (LIFT) is the Scottish Government's flagship scheme for helping people onto the property ladder. It works through shared equity, where the government takes a stake in your home alongside your mortgage.

How LIFT Works

LIFT comes in two main variants:

• Open Market Shared Equity (OMSE): The government contributes between 10-40% of the purchase price. You fund the remaining 60-90% through your mortgage and deposit. This applies to properties on the open market.
• New Supply Shared Equity (NSSE): For new build properties purchased from councils or registered social landlords. The equity share arrangements are similar.

Crucially, you pay no rent on the government's share. This makes LIFT significantly more affordable than some shared ownership schemes in England where you pay rent on the portion you don't own.

Who Qualifies for LIFT?

LIFT is available to first-time buyers, but certain groups receive priority:

• Social housing tenants
• People with disabilities
• Members of the armed forces and veterans
• Widows, widowers, and bereaved partners of armed forces personnel
• Those aged 60 and over

Even if you're not in a priority group, you can still apply – though priority applicants are considered first. You'll also need to demonstrate that you cannot afford a suitable property without assistance, based on your affordability assessment.

How to Apply for LIFT

The application process works as follows:

• Step 1: Apply through your local council or housing association
• Step 2: If approved, you'll receive a Passport Letter confirming your eligibility
• Step 3: The Passport Letter is valid for 12 weeks – during this time, you can search for a property
• Step 4: Complete your purchase – note that the current deadline for settlement is 31 March 2026

Could You Benefit from Government Help?

Book a free chat with Marc to see if you qualify for LIFT or other schemes.

Book Your Free Consultation

Here's a quick comparison of the available schemes for first-time buyers in Scotland:

Deposit Unlock is a UK-wide scheme that allows buyers to purchase a new build property with just a 5% deposit. Unlike LIFT, this isn't a shared equity scheme – you own 100% of your home from day one.

The scheme works through participating house builders who provide insurance to the lender, reducing the risk associated with high loan-to-value lending. Major builders like Barratt, Taylor Wimpey, and Persimmon participate in the scheme.

This is a good option if you're set on a new build and have a 5% deposit but don't want the complexity of shared equity arrangements.

You may still see references to these schemes online, but they're no longer accepting applications:

• Help to Buy Scotland: This scheme provided an equity loan of up to 15% (or 20% in some cases) for new build homes. It closed to new applications and is no longer available. You can read more about the scheme's history in our Help to Buy Scotland guide.
• First Home Fund: This popular scheme offered interest-free shared equity loans of up to £25,000. It ran until 2021 and is now closed.

Don't waste time searching for these – focus on the schemes that are actually available today.

One benefit available to all first-time buyers in Scotland is relief from Land and Buildings Transaction Tax (LBTT). This is Scotland's equivalent of Stamp Duty in England.

First-time buyers pay 0% LBTT on the first £175,000 of the property price. For home movers, the 0% threshold is only £145,000. This means first-time buyers can save up to £600 compared to other buyers.

LBTT Rates and First-Time Buyer Relief

For example, if you're a first-time buyer purchasing a property at £200,000, you'd pay: £0 on the first £175,000 + 2% on the remaining £25,000 = £500 in LBTT. A home mover at the same price would pay £1,100.

Can I use LIFT if I'm not in a priority group?

Yes, you can still apply for LIFT even if you're not in a priority group. However, priority applicants are considered first, so processing times may be longer if demand is high. The key requirement is demonstrating that you cannot afford a suitable property without government assistance.

What happens to the government's equity share when I sell?

When you sell your LIFT property, you repay the government's share based on the current market value – not the original amount. If your home has increased in value, you'll repay more; if it's decreased, you'll repay less. You can also choose to buy out the government's share at any time by "staircasing" to full ownership.

Is there an income limit for LIFT?

LIFT doesn't have a strict income cap, but applicants must demonstrate they cannot afford to buy a suitable home without assistance. Your local administering agent will assess your financial circumstances as part of the application process. Higher earners who can afford to buy without help will typically be declined.

Can I combine LIFT with other schemes?

LIFT cannot be combined with other shared equity schemes. However, you can still benefit from LBTT first-time buyer relief on top of your LIFT purchase, which could save you hundreds of pounds in tax. Your solicitor will handle the LBTT return as part of the buying process.

Navigating government schemes can feel complicated, but the right guidance makes all the difference. Understanding whether LIFT is right for you, how it affects your mortgage options, and what the application timeline looks like are all things a good mortgage broker can help with.

At McGhie Mortgages, I help first-time buyers across Edinburgh, the Lothians, and all of Scotland understand their options – including which lenders work with LIFT and how to structure your finances for the best outcome.

Wondering if you qualify for government help? Book a free, no-obligation consultation and let's explore your options together.