The scheme is expected to be formally confirmed at the Budget in October 2026, with further details on eligibility, property price limits and implementation expected to be announced at that time.
How will the scheme work?
Under the proposed scheme, eligible first-time buyers purchasing a qualifying new-build property could contribute a deposit of 2.5%, alongside a government-backed equity loan worth up to 20% of the property’s value.
The equity loan will initially be interest-free, with the Government saying this is intended to help keep housing costs more affordable for those using the scheme.
Buyers will still need to satisfy mortgage affordability criteria for the remaining balance.
Who is the scheme aimed at?
The Government says the scheme is intended to help first-time buyers who can afford the ongoing costs of owning a home but struggle to save a larger deposit.
There will be household income limits and local property price caps, and it will apply to new-build properties purchased from developers participating in the programme.
Developers will also be expected to contribute towards the costs of the scheme through a fee linked to property values.
A new scheme with familiar roots
The ‘Your First Home’ scheme follows a number of similar initiatives introduced by previous governments, most notably the Help to Buy scheme, which was launched in 2013 by then-Chancellor George Osborne. That scheme initially allowed eligible purchasers to buy a newly built home with a 5% deposit, on properties valued up to £600,000. The Government then provided an equity loan of up to 20% of the property’s value, helping buyers secure a mortgage for the remaining amount. The equity loan was interest-free for the first five years, before interest charges began to apply.
What happens next?
The full details of Your First Home are expected to be announced at the October 2026 Budget.
Pre-registration is expected to open before the end of 2026, subject to the final arrangements.
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