New first-time buyer scheme announced by Burnham

Officially announced on 28th October during the Autumn Budget, Chancellor John Healey shared further information about the new “Your First Home” scheme.

The scheme will be open for pre-registration by the end of December 2026, with full applications from February 2027, with the first loans being issued from April 2027.  It has £4.7 billion in government lending to support it.

Buyers require a minimum deposit of 2.5% (and a maximum of 15%) combined with a 20% government-backed equity loan from a participating lender.

• There will be an initial interest-free period on the equity loan

• There are income limits and local property price caps

• The equity loan must be repaid when you sell your property or before you pay off your mortgage

• The scheme is only available on eligible new-build properties from participating developers

Eligibility Criteria

• Be a first-time buyer purchasing a property in England to live in

• Have a household income of no more than £110,000 (£140,000 in London)

• Have a deposit of between 2.5% and 15%

• Pass credit and affordability checks from the lender

Andy Burnham said: “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own. So, we will step in to help more first-time buyers onto the housing ladder.”

The First Home Scheme is not to be confused with the First Homes scheme, which offers discounts of at least 30% of the market value on selected new-build homes in England.