Staff reporter
LONDON: Prime Minister Andy Burnham is to introduce a new “Your First Home” scheme aimed at helping first-time buyers in England who struggle to save a large deposit or cannot rely on financial support from their families.
Under the proposal, eligible buyers will be able to receive an equity loan worth 20% of the purchase price of a new-build home. The scheme will require buyers to provide a minimum deposit of 2.5%, with the government loan making up part of the remaining cost. The loan will initially be interest-free.
The programme is specifically designed for people with regular incomes who can afford mortgage repayments but have been unable to build up a substantial deposit. Household-income and deposit limits, along with regional property-price caps, are expected to prevent the scheme from being used by higher earners or buyers purchasing expensive properties.
The government says the scheme will be announced by Housing Secretary John Healey in the Budget, with registration expected to open by the end of 2026. Funding is expected to come from reallocating existing government budgets rather than additional borrowing.
Burnham said the policy was intended to help young people who have been priced out of home ownership and do not have access to the so-called “bank of mum and dad”. He also argued that giving buyers additional support would provide developers with greater confidence to build new homes.
The announcement comes after a government review of the previous Help to Buy programme, which supported more than 387,000 home purchases. The earlier scheme was criticised by some economists and campaigners for benefiting people who might have been able to buy without government assistance and for potentially contributing to higher house prices.
Burnham’s new proposal therefore represents a modified return to government-backed assistance for first-time buyers, with tighter eligibility rules intended to focus support on households facing the biggest deposit barriers.
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