NEW FIRST-TIME BUYER SCHEME TO BE CONFIRMED AT BUDGET

The government has today (Saturday, 26 September) announced a new equity loan scheme - Your First Home - in England will be confirmed at next month's Budget, to support more people into homeownership.

The Your First Home scheme will help tackle the deposit barrier for first-time buyers who would be unable to afford their first home otherwise, building on the government's existing work to help more young people and families onto the housing ladder.

A new equity loan scheme will provide a 20% equity loan to help first-time buyers buy a new build home. An initial interest free period will ensure housing costs are affordable.

Household income caps and a 15% deposit cap will ensure support is targeted, particularly at those who don't have support from the 'Bank of Mum and Dad' and face barriers to buying alone.

A minimum deposit requirement of just 2.5% will ensure the scheme is accessible to those who have a regular income but have been unable to save for a large deposit.

Local house price caps will be in place to ensure the scheme is appropriately targeted.

Developers will pay a fee related to property values to participate in the scheme, which will contribute to its running costs.

The loans will be funded by reprioritising existing government Financial Transactions.

Pre-registration will open by the end of 2026.

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