New first-time buyer scheme to be confirmed at Budget

The government announced on 26 September 2026 that the Your First Home scheme will be confirmed at the next Budget in October, providing equity loans to first-time buyers in England. The scheme targets those struggling with deposit requirements by enabling 2.5% deposits backed by 20% government equity loans on eligible new-build properties. Prospective buyers will benefit from an initial interest-free period, reducing monthly costs compared to standard 95% mortgages. The initiative aims to address barriers preventing first-time buyers from entering the housing market.

To ensure targeted support, the scheme will include a household income cap and local property price caps, with details to be outlined at the Budget. The government stated the caps will prioritise assistance for those most in need of homeownership support. Developers participating in the scheme will contribute financially to help cover associated costs. The policy builds on existing government efforts to assist young people and families in purchasing their first homes.

The Your First Home scheme is designed to stimulate the new-build housing market, which faces challenges from international economic pressures and rising construction costs. By providing equity loans, the government aims to boost housing supply and support developers during difficult market conditions. The scheme’s implementation will depend on developer participation and financial contributions outlined in the Budget. Further details on costs and timelines will be provided by the Chancellor at the Budget.

The government highlighted that the scheme will help first-time buyers who would otherwise be unable to afford a home due to deposit barriers. It follows the announcement of the scheme’s confirmation at the Budget, with full eligibility criteria and caps to be specified. The initiative reflects the government’s ongoing commitment to increasing homeownership accessibility for younger generations and families across England.