Key facts
- A new "Your first home" scheme will offer first-time buyers in England a 20% equity loan for new-build homes.
- Buyers will require a minimum deposit of 2.5% and benefit from an initial interest-free period.
- The scheme targets individuals with regular incomes who cannot afford a large deposit or lack family financial support.
- Income, deposit, and price caps will be in place to ensure the scheme assists those on modest salaries and purchasing affordable homes.
- Plans include strengthening local leaders' powers to take over long-term empty and derelict homes.
- The eligibility period for empty dwelling management orders will be reduced from two years to six months.
Andy Burnham has announced a new government initiative, "Your first home," designed to assist first-time buyers in England who struggle to save for a substantial deposit or do not have financial backing from their families. The scheme will provide a 20% equity loan for the purchase of new-build homes, featuring an initial interest-free period and requiring a minimum deposit of just 2.5%.
Eligibility will be determined by household income and deposit caps, specifically targeting individuals who find it difficult to buy a home independently. Price caps will also be enforced to ensure that only modest properties are eligible. Burnham stated that the program aims to help more young people onto the housing ladder, particularly those without familial financial support, and to encourage builders to deliver quality new homes.
In addition to the homeownership scheme, Burnham also revealed plans to enhance the authority of local leaders in managing long-term empty and derelict properties. The government intends to reduce the time a property must be vacant before it can be subject to an empty dwelling management order from two years to six months. This change aims to expedite the return of these homes to use and prevent disrepair. Local authorities will also face simplified evidential requirements for these orders.
The "Your first home" program is slated for announcement in the upcoming budget, with registration opening by the end of 2026. Funding is expected to come from reprioritizing existing government budgets, though the specific source remains unclear. Developers participating in the scheme will pay a fee based on property values to cover running costs. Burnham defended the scheme against concerns that it might inflate house prices, asserting that it is coupled with broader efforts to increase overall housing supply.