The Government has announced plans to introduce a new Help to Buy-style equity loan scheme for first-time buyers, branded “Your First Home”.
While full details will not be confirmed until the Autumn Budget, this marks a significant return to demand-side housing support and signals growing recognition that planning reform alone may not be enough to deliver the Government’s ambitious housing targets.
- ✅ First-time buyers purchasing new-build homes in England
- ✅ Minimum 2.5% deposit
- ✅ 20% Government-backed equity loan
- ✅ Initial interest-free period
- ✅ Pre-registration before the end of 2026
- ✅ Running alongside the Mortgage Guarantee Scheme
The broad structure is familiar, but this version appears likely to be more targeted. The original Help to Buy scheme supported around 387,000 purchases, with 85% of buyers purchasing their first home, and accounted for around one in three new-build sales at its peak. This time, ministers have already indicated income caps, property price caps and tighter eligibility criteria aimed at supporting households that can sustain mortgage repayments but struggle to overcome the deposit hurdle. A developer contribution is also expected, although details remain unclear.
This is arguably the most significant housing market intervention since Help to Buy ended and represents the type of demand-side support many housebuilders have been calling for. The previous scheme had a noticeable impact on delivery. Private new-build completions increased from 87,010 in 2013 to over 100,000 within two years, averaging almost 123,000 homes per year during the scheme’s lifespan. Importantly, the affordability benefit may be even greater today.
This could help more first-time buyers overcome affordability and deposit barriers while giving developers increased confidence to bring forward new homes.
The Autumn Budget is expected to provide clarity on:
- Income limits
- Regional price caps
- Deposit and savings thresholds
- Length of the interest-free period
- Loan repayment terms
- Developer contributions
- Funding arrangements and scheme duration
The return of a Help to Buy-style scheme is a clear signal that the Government believes stronger buyer demand is needed alongside planning reform to achieve its housing delivery ambitions.
The original scheme undoubtedly supported both homeownership and housebuilding, and the affordability benefits of an interest-free equity loan are arguably even greater in today’s higher interest rate environment. However, the ultimate success of “Your First Home” will depend heavily on the detail, particularly around eligibility, price caps and how effectively the scheme stimulates delivery without placing undue upward pressure on new-build values.
What impact do you think this could have on first-time buyers and housing delivery over the next few years?