UK unveils ‘Your First Home’ buyer scheme

The UK government has set out plans for a new housing programme, “Your First Home”, designed to help first-time buyers purchase new-build homes in England. The scheme centres on government-backed equity loans intended to make deposits more affordable and support access to the property market for households without substantial savings.

Under the proposal, eligible first-time buyers will be able to obtain an equity loan of up to 20% of the value of a new-build property. Buyers are expected to contribute a minimum deposit of 2.5%, and the equity loans will include an initial interest-free period, reducing the cost of borrowing in the early years of ownership.

The scheme will be targeted through household income caps, limiting participation to buyers below specified earnings thresholds. Local property price caps will also apply, meaning support can only be used to purchase homes priced within defined limits in each area, with the stated aim of focusing assistance on more modestly priced properties.

These eligibility rules are intended to exclude higher earners and those able to rely on significant savings, channelling support instead toward households that face greater barriers in accessing home ownership. The design has been described as a more tightly focused version of earlier Help to Buy-style equity loan arrangements.

Funding for “Your First Home” is planned to come from reprioritising existing government budgets, rather than from a dedicated new tax or levy. The government has indicated that this reallocation will underpin the equity loan facility and associated administration costs.

Developers that choose to participate will pay a fee linked to the value of properties sold under the scheme. These contributions are expected to help cover running costs and align developers with the programme’s objectives of supporting first-time buyers and encouraging delivery of new-build homes.

The government has said the scheme will be confirmed in the October Budget, with Chancellor John Healey due to formally announce the detailed measures. This Budget confirmation is intended to provide clarity on operational rules, eligibility thresholds and regional price caps.

Officials expect the programme to open for registration by the end of 2026. This timetable is designed to give lenders, developers and prospective buyers time to prepare for the new arrangements and integrate the scheme into mortgage and sales processes once it becomes active.

Alongside the equity-loan scheme, the government plans to strengthen powers for local leaders to take action over long-term empty and derelict homes. A key change will be reducing the minimum period a property must stand empty before an empty dwelling management order can be used, cutting the threshold from two years to six months.

By tightening these rules, local authorities will be able to intervene more quickly to bring underused housing stock back into occupation. This measure is intended to complement “Your First Home” by increasing the effective supply of homes available, alongside new-build activity supported by the equity loans.