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Burnham launches 'Your First Home' equity loan scheme for first-time buyers
Prime Minister Andy Burnham announced 'Your First Home', a new equity loan scheme for first-time buyers in England requiring a 2.5% deposit and offering a 20% loan toward new-build properties, with household income caps targeting those without family financial support. Full details will be provided in the Budget next month, with registration opening by year-end. The scheme aims to help young people access homeownership while boosting housing construction, though implementation details remain unclear.
Quick Facts
- Launch of 'Your First Home' equity loan scheme
- 20% equity loan for new-build property purchases
- Minimum 2.5% deposit requirement
- Initial interest-free period on loan
- Household income caps and deposit caps applied
Prime Minister Andy Burnham has announced 'Your First Home', a new housing support scheme targeting first-time buyers in England who lack family financial backing. The programme offers an equity loan worth 20% of a new-build property's value, requiring a minimum deposit of just 2.5%. An initial interest-free period applies to the loan, with household income caps and deposit limits designed to exclude higher earners and savers. Housing Secretary Angela Rayner stated the scheme would "build on the lessons learned from previous schemes, while retaining the benefits" and represent "a Labour way" of targeting support to those who need it most.
The initiative aims to address affordability challenges facing young people entering the housing market, particularly those without parental financial support. Burnham emphasised the scheme's dual purpose: helping first-time buyers access homeownership while giving builders "confidence to deliver the high-quality new homes the country needs." Price caps will ensure participants can only purchase modest homes. Full details are expected in next month's Budget, with pre-registration opening before the end of 2026.
Funding will come from reprioritising existing government budgets, with housing developers paying fees linked to property values to cover running costs. The scheme mirrors elements of previous Help To Buy initiatives introduced under the Coalition government in 2013, which supported 387,000 people but faced criticism for failing to target those most in need and for contributing to rising house prices. Burnham acknowledged these concerns, stating the new scheme includes "adjustments" to focus support on those "who really need" it, and that the government would simultaneously work to increase overall housing supply to avoid price inflation.
However, questions remain about implementation details. Ministers have not confirmed whether age restrictions apply or set a maximum property price cap. Housing Secretary Angela Rayner acknowledged separately that there is only a "slim chance" the government will meet its target of building 1.5 million homes in England by the next election, with data showing a continued decline in new construction rates.
Why This Matters
The scheme affects first-time homebuyers in England seeking to purchase new-build properties; it introduces a 2.5% minimum deposit requirement and a government-backed 20% equity loan, with an initial interest-free period. Implementation hinges on Budget approval and year-end registration opening. The policy directly influences housing demand, construction activity, and government spending reprioritization. Success depends on whether price caps and income ceilings effectively target intended demographics without replicating affordability issues (rising house prices, poorly-targeted support) documented in the predecessor Help To Buy programme (2013–2023), which reached 387,000 participants but faced criticism. Housing Secretary Angela Rayner separately stated only a 'slim chance' of meeting the 1.5 million home construction target by the next election, indicating potential resource constraints on both supply and demand-side interventions.
Timeline & Sources
Jan 1, 2013
WireGeorge Osborne announced first Help To Buy scheme
Jan 1, 2020
WireFurther iteration of Help To Buy scheme introduced with revised terms
Sep 26, 2026
WireBurnham announced 'Your First Home' scheme at Labour Party conference