New scheme for first-time buyers announced

The government has announced plans for a new equity loan scheme aimed at helping first-time buyers purchase new-build homes in England.

Called Your First Home, the proposed scheme would allow eligible first-time buyers to purchase a new-build property with a deposit of 2.5%, alongside a government-backed equity loan of up to 20% of the property's value.

The equity loan would have an initial interest-free period. The government says the scheme is intended to support buyers who may otherwise struggle to save a larger deposit.

The scheme would be subject to eligibility criteria, including a household income cap and local property price caps. Buyers would also need to purchase from a developer signed up to the scheme.

Further details, including the full eligibility criteria, costs and when the scheme will become available, are expected to be confirmed by Chancellor John Healey at the Budget on the 28th October 2026. The government has said pre-registration is expected to open by the end of 2026.

The announcement forms part of wider government plans to support homeownership and new-build housing in England. Participating developers are expected to contribute towards the running costs of the scheme.