Quick Summary
- Government buys up to 40% equity in your home — you pay a mortgage on your share only, with no rent charged on the government's portion
- Income limit is £38,000 gross household — for OMSE (existing homes); price limits vary by council area, from around £145,000 in rural areas to £230,000 in Edinburgh
- Two routes: OMSE for existing homes, NSSE for new-builds — both are active in 2026; Help to Buy Scotland and the First Home Fund are both closed
- Use the LIFT Shared Equity Calculator to check your area's price limit and estimate what you could borrow under each scheme
Scotland's main shared equity scheme for first-time buyers is alive and accepting applications in 2026. If you cannot afford to buy on the open market but you have steady employment and a small deposit, the LIFT scheme may close the gap.
Quick Answer: The LIFT scheme (Low-cost Initiative for First Time Buyers) has two parts. OMSE lets you buy an existing property on the open market, with the Scottish Government taking a 10–40% equity share. NSSE works the same way for new-build homes. You pay a standard mortgage on your share and pay nothing for the government's stake. When you sell, the government takes its percentage of whatever the property is worth at that point. The income limit for OMSE is £38,000 gross household income. Property price limits vary by area — use the LIFT Shared Equity Calculator to check your council area.
What is the LIFT scheme?
LIFT stands for Low-cost Initiative for First Time Buyers. It is a Scottish Government shared equity programme that helps people who earn too much to qualify for social housing but too little to buy comfortably on the open market.
Under LIFT, the Scottish Government purchases a share — typically between 10% and 40% — of the property on your behalf. You take out a standard residential mortgage for the remaining share. The government's stake is recorded as a standard security against the title deeds, but it does not function as a loan: there is no monthly payment on the government share, no interest, and no rent.
LIFT is not the same as shared ownership schemes common in England, where you pay rent on the portion you don't own. With LIFT, the government simply holds equity alongside you — if the property rises in value, both you and the government benefit proportionally.
The scheme is administered locally through councils and registered social landlords (RSLs), with funding coming from the Scottish Government. Applications are assessed at local level, which means waiting times, priority groups, and availability of funding can vary depending on where you want to buy.
Why LIFT exists in Scotland
The gap between Scottish household incomes and house prices — particularly in cities and the Central Belt — means many working families cannot access homeownership without assistance. Help to Buy Scotland ran from 2013 and helped thousands of buyers, but it closed to new applications in 2024. The First Home Fund also closed. LIFT remains the primary active route.
OMSE vs NSSE — what's the difference?
LIFT has two distinct sub-schemes. You apply to one or the other depending on whether you want to buy an existing home or a new-build.
| OMSE | NSSE | |
|---|---|---|
| Full name | Open Market Shared Equity | New Supply Shared Equity |
| Property type | Existing homes on the open market | New-build homes only |
| Government equity share | 10% to 40% | Up to 40% |
| Who builds/sells | Any private seller | Developer or housing association |
| How you find properties | Standard estate agents, property portals | Via participating developers and RSLs |
| Price limits | Vary by council area | Set by the developer/RSL for each development |
OMSE gives you the flexibility to choose any property in your area that falls within the price limit. You go through a normal buying process — find a property, make an offer, conclude missives — and the government equity share is arranged through your LIFT application.
NSSE is more limited in terms of choice. Properties are built and sold specifically as NSSE units through housing associations and developers. There is less flexibility, but the new-build quality and warranties can be an advantage.
For most buyers, OMSE is more practical because there are far more properties available. NSSE is worth considering if there is a specific development in your area offering NSSE units — check with your local council.
Who qualifies for LIFT?
Eligibility basics
To apply for OMSE or NSSE, you must:
- Be a first-time buyer, or not have owned a home in the past two years in some circumstances
- Be a Scottish resident, or planning to move to Scotland
- Be unable to afford to buy a suitable home on the open market without assistance
- Have a gross household income at or below £38,000 (for OMSE)
- Have a small deposit — typically at least 5% of your share of the purchase price
- Be able to obtain a standard residential mortgage for your equity share
The £38,000 income threshold applies to total gross household income — that means all adults who will own the property or live in it as a main residence. If you and a partner each earn £25,000, your combined £50,000 exceeds the limit.
Priority groups
If demand in your area exceeds available funding, applications from the following groups take priority:
- Serving military personnel — active members of the UK armed forces
- Social renters — people currently renting from a council or housing association who want to free up social housing
- People with disabilities — or people caring for a household member with a disability that affects housing suitability
- Those at risk of domestic abuse — in some areas, this is included as a priority category
Being in a priority group does not guarantee acceptance, but it can move you up the waiting list where funding is limited.
Property requirements
The property you buy must:
- Be in Scotland
- Fall within the price limit for your council area
- Be suitable as your only or main residence
- Pass a standard home survey (a Home Report is required for all Scottish property purchases)
For OMSE, the property must be on the open market. Properties being sold by housing associations or other social landlords are generally excluded from OMSE.
Price limits by council area
Price limits for OMSE vary significantly depending on where you want to buy. The limits are periodically reviewed by the Scottish Government. The figures below are indicative for 2026 — verify with your local council before making an offer.
| Area | OMSE price limit (approx.) |
|---|---|
| Edinburgh | £230,000 |
| Glasgow | £200,000 |
| Aberdeen | £185,000 |
| Dundee | £175,000 |
| Highland | £175,000 |
| Stirling / Clackmannanshire | £175,000 |
| Fife | £170,000 |
| Renfrewshire / East Renfrewshire | £175,000 |
| South Lanarkshire | £165,000 |
| Rural areas (e.g. Orkney, Shetland, Western Isles) | From £145,000 |
These limits are approximate. The Scottish Government adjusts them periodically and they can differ between rural and urban areas within the same council. Always confirm with your local council or the LIFT helpline before making an offer.
The calculator at /calculators/lift-shared-equity lets you select your council area and see the current applicable limit, along with an estimate of what you would need to borrow.
How the equity share works — with a worked example
The core mechanic is straightforward: you buy a percentage of the property and the government buys the rest. You pay a mortgage on your share only.
Worked example: £200,000 property in Glasgow
Assume you want to buy a property at £200,000 and the government takes a 20% equity share (£40,000).
| Item | Amount |
|---|---|
| Full property price | £200,000 |
| Government equity share (20%) | £40,000 |
| Your share (80%) | £160,000 |
| Your deposit (5% of your share) | £8,000 |
| Mortgage required | £152,000 |
| Monthly mortgage payment (4.5%, 25 years) | ~£840/month |
You own 80% of a £200,000 home with an £8,000 deposit. Without LIFT, you would need at least a £10,000 deposit to borrow £190,000 at 95% LTV — and your monthly payment would be approximately £1,045/month. The scheme reduces your monthly outgoings by around £200.
What happens to the government's share over time
The government's equity share tracks the property value. If your Glasgow property rises from £200,000 to £240,000:
- The government's 20% share is now worth £48,000 (not the original £40,000)
- Your 80% share is now worth £192,000
If you sell at £240,000, the government receives £48,000 and you receive £192,000 (before paying off the mortgage balance). The percentage is fixed; the cash value moves with the market.
What happens to your share
As you pay down your mortgage, your equity in your 80% share grows — but your 80%/20% split with the government does not automatically change. If you want to own a larger percentage, you need to buy out part or all of the government's share (explained below).
Try it yourself
Check your area's price limit, choose your equity split, and see what mortgage you'd need on your share of the purchase.
Open LIFT Shared Equity CalculatorNo sign-up required.
How to apply for LIFT
The application process is managed locally, not through a central Scottish Government portal. Here is the general sequence:
Step 1: Check eligibility
Before approaching your council, confirm you meet the basic criteria: income below £38,000, first-time buyer, Scottish resident, can get a mortgage. Use the LIFT Shared Equity Calculator to get a rough picture of what you could borrow.
Step 2: Contact your local council or housing association
Submit an expression of interest or a LIFT application to your local council housing department, or contact a registered social landlord (RSL) in your area. You can also call the national LIFT helpline: 0800 014 2020.
Step 3: Receive an approval in principle
If you meet the criteria and funding is available, the administrator will issue an approval in principle. This sets out the maximum property price they will support in your area.
Step 4: Find a property (OMSE) or apply for a specific unit (NSSE)
For OMSE, you now search for a property in the normal way — estate agents, Rightmove, ESPC, Zoopla. The property must be within your approved price limit and meet the scheme's property requirements.
For NSSE, you contact participating developers or RSLs about available units.
Step 5: Get a mortgage offer
Your lender needs to know that the property has a government equity share. Not all lenders participate in LIFT — check with your mortgage broker or the approved lender list from the LIFT administrator. Your solicitor will manage the legal documentation alongside the equity share agreement.
Step 6: Instruct a solicitor
You need a Scottish solicitor to handle the conveyancing. They will deal with the equity share agreement, the standard security, LBTT return, and registration. Solicitor fees for an LIFT transaction are similar to a standard purchase but slightly higher due to the additional legal documentation.
Step 7: Exchange missives and complete
The process then follows normal Scottish conveyancing: missives are concluded, surveys completed (a Home Report is mandatory), and the transaction completes on the agreed date.
Approval in principle for LIFT does not last indefinitely. Funding can run out, and approvals are typically valid for a set period (often 3–6 months). If you haven't found a property in time, contact the administrator about renewal before it lapses.
Buying out the government's equity share
You are not locked into the equity split forever. You can staircase — buy additional equity from the government — at any time. This is called buying out the government's share, or increasing your equity stake.
Key rules:
- You must commission a new independent valuation of the property at the time of purchase
- You pay based on the current market value, not the original purchase price
- You can buy out in chunks (e.g. go from 80% to 90% to 100%) or all at once
- There is no penalty or fee for doing this beyond the valuation and legal costs
- Once you own 100%, the government's standard security is removed from the title
This is worth doing if property values have stayed flat or fallen (you buy the government's share cheaply) or when your income has increased enough to absorb a larger mortgage.
If the property has risen significantly in value, buying out the government's share becomes more expensive. In that scenario, some LIFT owners choose to hold the equity split until they sell, particularly if they do not plan to stay long-term.
Costs to budget for
LBTT
You pay LBTT on the full purchase price of the property, not just your equity share. If you are a first-time buyer (which LIFT applicants almost always are), first-time buyer relief applies:
- Nil rate to £175,000
- 2% on £175,001 to £250,000
On a £200,000 purchase as a first-time buyer: the first £175,000 is tax-free, and 2% applies to the remaining £25,000 — giving an LBTT bill of £500.
Use the LBTT Calculator to get an exact figure for your purchase price.
Solicitor fees
Expect to pay £1,200–£2,000 for a typical LIFT transaction, including the LBTT return. This is slightly higher than a standard purchase due to the equity share documentation.
Mortgage costs
Arrangement fees, valuation fees, and any broker fees apply in the normal way. Because your loan-to-value ratio is based on your equity share (not the full property price), you can access better mortgage rates with a smaller cash deposit.
Maintenance and repairs
You are responsible for 100% of maintenance and repair costs from day one — even though the government holds a share of the equity. Factor this into your budget. If you let the property fall into disrepair, you reduce the value of both your share and the government's.
Home Report
All Scottish property purchases require a Home Report from a RICS-qualified surveyor. These typically cost £300–£600 depending on property size, though for OMSE purchases the seller usually commissions it.
LIFT vs buying outright vs renting
| LIFT | Buying outright | Renting | |
|---|---|---|---|
| Deposit needed | 5% of your equity share | 5–20% of full price | 1–2 months rent |
| Monthly cost | Mortgage on your share | Mortgage on full price | Rent (no equity gained) |
| Build equity | Yes (your share) | Yes (full value) | No |
| Flexibility | Can buy out; equity share on sale | Full flexibility | Move more easily |
| Government involvement | Until sold or bought out | None | None |
| Maintenance | You pay 100% | You pay 100% | Landlord's responsibility |
LIFT makes most sense if your income sits below £38,000, you have a small but stable deposit, and you want to be on the property ladder rather than renting. The absence of rent on the government's share makes it significantly better value than the shared ownership model used in England for equivalent scenarios.
Try it yourself
Enter your income, area, and deposit to see what you could buy and how an equity split affects your mortgage and monthly payments.
Open LIFT Shared Equity CalculatorNo sign-up required.
FAQ
What income limit applies to the LIFT scheme in Scotland?
The gross household income limit for OMSE (Open Market Shared Equity) is £38,000. This covers all income of adults who will jointly own or live in the property. NSSE income limits may differ slightly — check with the relevant developer or housing association when applying for a specific unit.
Can I use the LIFT scheme if I am not a first-time buyer?
LIFT is primarily for first-time buyers. In limited cases, people who have previously owned a home but have not done so for at least two years may qualify — for example, if circumstances have changed significantly (relationship breakdown, return to Scotland after a period abroad). Confirm eligibility with your local council.
Is the LIFT scheme the same as Help to Buy Scotland?
No. Help to Buy Scotland and the First Home Fund are both closed to new applications. LIFT (specifically OMSE and NSSE) is the active shared equity scheme for 2026. LIFT has different price limits and eligibility rules to the closed schemes.
How much can the government contribute under LIFT?
The government can take a stake of between 10% and 40% of the property price under OMSE, and up to 40% under NSSE. The exact share depends on your income, deposit, what you can borrow, and the property price relative to your area's limit. The calculator at /calculators/lift-shared-equity shows a worked example for your circumstances.
Do I pay rent on the government's share of the property?
No. This is a key difference from English shared ownership schemes. The Scottish Government holds equity only — you pay nothing for their share on a monthly basis. When you sell (or buy out their share), they receive their percentage of the proceeds or market value at that time.
Can I rent out my LIFT property?
No. LIFT properties must be your only or main residence. Renting out a property purchased under LIFT would breach the terms of the equity share agreement and could trigger repayment of the government's share. If your circumstances change and you need to move, you must sell the property (or buy out the government's share first).
Related Articles
- LBTT Explained: Scotland's Property Tax — full guide to what you will owe at purchase
- LBTT Calculator — calculate your exact LBTT bill including first-time buyer relief
- Mortgage Affordability Calculator — what can you borrow on your equity share
- Average House Prices Scotland — context for where property prices sit across Scotland
- Moving to Scotland from England — Financial Checklist — if you are relocating, what else changes financially
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax rates and thresholds can change — always verify current rates with Revenue Scotland, HMRC, or mygov.scot, and speak to a qualified financial adviser for advice specific to your circumstances.
Sources
- Scottish Government — LIFT scheme overview: mygov.scot/first-time-buyer-help/lift-shared-equity
- Revenue Scotland — LBTT rates and bands: revenue.scot/land-buildings-transaction-tax
- Revenue Scotland — LBTT first-time buyer relief: revenue.scot/land-buildings-transaction-tax/first-time-buyer-relief
- Scottish Government — OMSE scheme guidance: gov.scot/policies/homeowners/open-market-shared-equity
- LIFT helpline: 0800 014 2020
