Protected: The Budget, new-build and Shared Ownership: New options for aspiring homeowners

ving a deposit while paying rent can make buying your first home feel a long way off. The Autumn Budget on Wednesday 28th October, 2026 brought announcements that could help some buyers, alongside separate changes to Shared Ownership eligibility. Just Mortgages, believe understanding these options and their longer-term costs is essential. Here is what the latest announcements could mean for you. The homeownership schemes discussed below apply to England. Different arrangements operate elsewhere in the UK. Your First Home: A new route to buying One of the Budget’s biggest announcements for aspiring homeowners was confirmation of Your First Home, a government equity loan scheme for eligible first time buyers purchasing qualifying new-build properties. The scheme will combine: A deposit of at least 2.5% of the purchase price. A government equity loan covering 20% of the purchase price. A repayment mortgage from a participating lender for the remaining amount. The government plans to open pre-registration by the end of December 2026, with applications expected to open in February 2027 and the first purchases from April 2027. Household income limits and local property price caps will apply. For example, someone buying an eligible £300,000 home with a 2.5% deposit would contribute £7,500, alongside a £60,000 equity loan and a £232,500 mortgage. This is an illustration only; eligibility and mortgage approval will depend on individual circumstances. The equity loan will be interest-free for five years, with interest payable after that. Unlike with Shared Ownership, you own the whole property and the government is not your landlord. However, the loan repayment is linked to your home’s value, meaning the amount owed could increase if the property rises in value. The government will publish further guidance before applications open. Understanding the future interest costs and how you would repay the equity loan will be just as important as finding the initial deposit. Shared Ownership income limits are increasing In a separate announcement on Monday 26th October, ahead of the Budget, the government confirmed plans to increase the household income limits for Shared Ownership: Outside London, the limit will rise from £80,000 to £90,000. In London, it will rise from £90,000 to £110,000. The new limits are due to take effect in the new year. This could open up Shared Ownership to households previously above the income limit, although other eligibility requirements and affordability assessments will still apply. How does Shared Ownership work? Shared Ownership allows you to buy a share of a home and pay rent to a landlord on the remaining share. You would usually take out a mortgage to help purchase your portion. Initial shares are generally 25%-75% of the property’s value, although some homes offer shares starting at 10%. Your deposit is usually calculated on the share you purchase, rather than the property’s full value. For example, a 25% share of a £300,000 property would cost £75,000. A 5% deposit on that share would be £3,750, subject to lender requirements. You may also be able to buy additional shares later through “staircasing”, reducing the rent payable as your ownership increases. Look beyond the deposit A smaller deposit can make a difference, but it is only one part of the decision. With Shared Ownership, your monthly budget needs to cover mortgage repayments, rent on the remaining share and any service or estate charges. You will also need to allow for buying costs, such as legal fees and any applicable Stamp Duty. Ask for the property’s key information document before committing. Repair and maintenance responsibilities also matter. You can be responsible for these costs regardless of the share you own, although warranties or an initial repair period may cover certain expenses. Your solicitor should explain the terms of your lease. The government is examining further improvements to Shared Ownership, including barriers to staircasing, resale processes and fees. These are areas under review, so buyers should assess the arrangements currently offered rather than assume future changes will apply. Other housing announcements worth knowing about The Budget also provided an additional £1.5 billion for the Social and Affordable Homes Programme, intended to deliver around 10,000 homes in England. Funding will prioritise social rent, particularly council homes, so this should not be read as a commitment to 10,000 additional Shared Ownership properties. Looking further ahead, a new First Time Buyer Individual Savings Account (ISA) is planned from April 2029 to help people save towards their first home. It will allow annual contributions of up to £4,000 and provide a 25% government bonus, subject to the scheme’s limits and qualifying purchase rules. This is future support rather than an option available today. Understanding your next step These announcements could give some buyers more choice. The right route will depend on your savings, income, monthly commitments and future plans. Just Mortgages has a nationwide advisor network, including specialists in new-build and Shared Ownership mortgages. We can help you understand your mortgage options and consider affordability alongside the wider costs of buying a home. Speak to a Just Mortgages advisor to explore what could be possible for you. Your home may be repossessed if you do not keep up repayments on your mortgage.

Shared Ownership: What is it and how does it work?

Shared Ownership: What is it and how does it work?

Your First Home Scheme: a new option for first time buyers

First time buyer schemes

Protected: The Budget, new-build and Shared Ownership: New options for aspiring homeowners