INCENTIVES TO HELP BUY NEW BUILD PROPERTIES IN 2026
TL;DR:
If you’re buying a new build in 2026, you’ve got many options to help make it much more achievable. Government schemes like First Homes and Shared Ownership can slash thousands off the price, while developers offer deposit contributions and part exchange deals. Plus, stamp duty relief for first-time buyers and VAT exemptions on new builds mean more money stays in your pocket.
Yes, you can actually afford this
If you’ve been scrolling through property websites for new build properties to buy in 2026, thinking “there’s no way I can afford that”, hold up. Fortunately, plenty of incentives are available to help people like you get on or move up the property ladder and secure your lovely new build home.
Yet, from government schemes to developer sweeteners, navigating all these options can sometimes feel a tad overwhelming. Numerous head-spinning questions arise as to what you qualify for or what will actually save you money. This guide will break down what’s available, keep things straightforward, and help you find the incentives that fit your situation.
What are new build home incentives?
A particularly tantalising perk of buying a new build, besides the fresh construction and that new-new feel, is the vast array of incentives available to help buyers. These incentives include support schemes, discounts, and financial assistance, all designed to make buying a brand-new property more affordable and accessible. They come in different forms from different sources.
Government incentives
Let’s start with the big guns – government schemes. These aren’t just token gestures; they can genuinely save you tens of thousands of pounds.
First Homes scheme
The First Homes scheme, as the name suggests, is the best option for first-time buyers. It offers new build properties at a discount of at least 30% off market value. In some areas, local authorities can, depending on eligibility criteria, increase this discount to a whopping 40% or even 50%.
You buy a new build home at a discounted price, but there are a few conditions (there always are, right?). Household income must be £80,000 or less outside London (£90,000 in London), and a mortgage must cover at least half the purchase price. Also, the home must be your only property and your primary residence, and it cannot cost more than £250,000 (£420,000 in London) after the discount is applied.
It’s not a loan you have to pay back, nor is there any rent to pay – it’s an actual discount on the price. This means that, with a 30% discount, those looking to purchase a £ 250,000 home will end up paying £175,000. That’s big savings.
Shared ownership
What if I can’t afford the full deposit or the mortgage payments for the whole property? Well, Shared Ownership is a fantastic scheme that lets you buy, you guessed it, a share (typically between 10% and 75%) of a property’s full market value and pay a subsidised rent to a landlord on the remaining share at a discounted price.
You can then buy bigger shares over time – a process called “staircasing” – with most cases enabling you to, eventually, own the whole property. The amount of rent you pay is based on the landlord’s share, so the more shares you buy, the less the cost of the rent.
Shared Ownership requires a 5% to 10% deposit payment and is only available to those with a household annual income of £80,000 or less (£90,000 or less in London). A mortgage or savings can be used to buy your share, making it a worthwhile opportunity for those to get a proper foothold on the property ladder and a much more affordable route for low- and middle-income households.
Lifetime ISA
The government’s Lifetime ISA (LISA) is a tax-free individual savings account, primarily designed to help young people save to buy their first home. If you’re over 18 and under 40, up to £4,000 can be deposited each year, and the government will add a 25% bonus up to a maximum of £1,000 each year. Do that for four years, and you’ve got £20,000 saved (£16,000 from you, £4,000 from the government). That’s a serious deposit boost, and it’s literally free money from the government for doing something you were planning to do anyway – save for a house.
You can only use a LISA to buy your first home (up to £450,000), and you need to have held the account for at least 12 months before you can use it toward a property purchase. If you withdraw the money for anything other than buying your first home or retirement (after age 60), you’ll pay a penalty that removes the bonus and more. But if you’re planning to buy and have time to save, a LISA is one of the best options available.
(Please note, this information is true as of January 2026, and is subject to change. Please check the Gov.uk website for the most up to date information)
Developer incentives
Government schemes are brilliant, but developers, like Wain Homes, often add their own incentives on top to make buying even more attractive. These can vary, but here are the common ones you’ll see in 2026.
Part exchange
Got a property to sell, but worried about being in a property chain? Part exchange schemes let the developer buy your current home, so you can move into your new build without the stress of finding a buyer or worrying about chains collapsing.
Developers typically offer market value or slightly below market value, and they handle all the selling hassle. It’s not always the absolute best price you’d get on the open market, but the convenience and certainty often make it worthwhile, especially if you’ve found your dream home and don’t want to run the risk of losing it to competition.
Deposit contributions
Some developers will contribute toward your deposit – sometimes 5% or more of the purchase price. On a £250,000 property, that could be £12,500 toward your deposit. This can be the difference between needing to save for another two years or moving in this year.
These contributions often come with conditions (they usually do), like needing to use the developer’s preferred mortgage broker or legal services. But if those services are competitive anyway, it’s basically free money toward your deposit.
Upgraded specifications
While not a direct financial incentive, some developers offer upgrades to your home’s specification – better flooring, upgraded kitchen appliances, improved bathroom fittings – at no extra cost. This saves you money you’d otherwise spend on improvements after moving in.
It’s worth asking what’s available. That £3,000 kitchen upgrade might not sound as exciting as cash off the price, but it’s still £3,000 you’re not spending.
Do you pay stamp duty on a new build house?
Right, let’s tackle the big question on everyone’s minds. The short answer is yes, you do pay stamp duty on a new build – but with some very helpful exceptions.
First-time buyers get stamp duty relief, which applies whether you’re buying a new build or an existing property. As of 2026, first-time buyers pay no stamp duty on properties up to £425,000 (and reduced rates up to £625,000). For many new build buyers, especially those using schemes like First Homes, this means paying zero stamp duty.
For everyone else, standard stamp duty rates apply to new builds just like any other property. However, because many new builds fall into price brackets where stamp duty is lower or zero (especially with scheme discounts applied), you often end up paying less than you would on a comparable resale property.
The key thing to remember is that stamp duty is calculated on the purchase price you’re actually paying – so if you’re buying through First Homes at a 30% discount, your stamp duty is calculated on that lower price. Same with Shared Ownership – you only pay stamp duty on the share you’re buying, not the full property value.
Are new build houses VAT exempt?
Yes, they are! When you buy a new build residential property, there’s no VAT charged on the purchase. The VAT has already been handled between the builder and their suppliers – it doesn’t get passed on to you as the buyer.
This is different from commercial properties or conversions, where VAT can apply. But for a standard new build home like those from Wain Homes, VAT isn’t something you need to budget for. One less thing to worry about, right?
The VAT exemption is actually one of the hidden benefits of buying new builds that people don’t always realise. On a £250,000 property, that’s potentially £50,000 you’re not paying (if VAT did apply at 20%). Obviously, the property price already factors in the builder’s costs, but it means you’re not hit with an additional tax on top of the purchase price.
Moving forward with Wain Homes
Look, buying a home – especially your first one – can feel overwhelming. There’s so much to think about, so many costs, and everything seems impossibly expensive. But these incentives exist specifically to help people like you make it happen.
New builds from developers like Wain Homes often come with these incentives built in, plus you get the peace of mind of a brand new home with modern specifications and energy efficiency. When you factor in all the financial help available, including our own first-class support to make your move perfect, it’s often a better deal than you might think.
If you are considering buying a new build in 2026, Wain Homes offers a range of quality properties across the country. Contact our team to discuss your options, arrange viewings, and start your journey to homeownership.
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