UK’s Prime Minister Andy Burnham has officially announced “Your First Home,” a major new government-backed housing initiative designed to help first-time buyers in England get onto the property ladder without relying on financial help from the “bank of mum and dad”.
Unveiled ahead of the Labour Party annual conference in Liverpool, the policy functions as a modern overhaul of equity loan programs, targeted specifically at buyers struggling to pull together large deposits.
Key details of ‘Your First Home’ Scheme:
A new help-to-buy scheme aimed at giving first-time buyers who cannot rely on the “bank of mum and dad” is to be introduced in a big policy announcement by Andy Burnham.
The programme, called “Your first home”, is intended to help buyers in England who have a regular income but have been unable to save for a large deposit or don’t have financial support from their family.
Buyers can secure a new-build property using a minimum deposit of just 2.5%, supported by a 20% government-backed equity loan featuring an initial interest-free period and a standard 75% mortgage.
To prevent abuse and ensure support reaches everyday buyers, the government will institute strict household income caps and local property price caps.
Participating housing developers will be required to pay a value-related participation fee to help cover administrative and running costs.
The program will be fully detailed by Chancellor John Healey in next month’s Budget, with pre-registration anticipated to open by the end of 2026.
As reported by the Guardian, funding will be unlocked by reprioritizing existing government budgets.
In an interview with the Guardian on the eve of Labour’s party conference in Liverpool, the prime minister said: “Too many young people are struggling with housing, with many giving up hope on ever having a home to call their own.
“So we are going to help more first-time buyers on to the housing ladder, especially those who can’t call on the bank of mum and dad.
“‘Your first home’ will get them the keys to their own front door, and give builders the confidence to deliver the high-quality new homes the country needs.”
Alongside the equity loan scheme, Burnham also announced measures to empower local authorities to take over long-term empty and derelict properties after six months instead of two years, bringing hundreds of thousands of vacant dwellings back into use for families in need-reversing changes made by the Conservatives.
