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September 26, 2026
The government has announced a new scheme, called Your First Home, which it says will help more first-time buyers in England get onto the property ladder.
The announcement, made on Saturday 26 September, is an early indication of what is to come in the Autumn Budget on Wednesday 28 October. It is not yet a scheme that buyers can apply for but Downing Street posts on social media suggested pre-registration will open at the end of the year.
The government says the full details, including costs and implementation dates, will be set out by the Chancellor at the Budget.
Your First Home is expected to be a government-backed equity loan scheme for first-time buyers purchasing a new-build home in England.
The headline proposal is:
The government says this structure could save buyers hundreds of pounds a month compared with taking out a 95% mortgage. It also says the scheme is intended to stimulate the new-build market, which has faced high construction costs and wider economic uncertainty.
We don’t yet know the full eligibility rules. The government has confirmed that the scheme will be for first-time buyers in England buying a new-build property from a participating developer.
It has also confirmed that there will be:
But the government has not yet said what those caps will be, how they will vary between areas, or whether there will be further conditions around buyers’ savings, credit history, household type, residency or the size of mortgage they can take on.
Other key details still to be confirmed include:
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So, how new is this scheme really? It certainly sounds a lot like the now defunct Help to Buy equity loan scheme, with an income cap like the current but disappointing First Homes Scheme.
Your First Home has clear similarities with the old Help to Buy equity loan scheme, which closed to new applicants in 2022 and completed its final purchases in 2023. But it is too early to say whether it is a direct replacement.
Like Your First Home, Help to Buy was limited to new-build homes in England and offered buyers a government equity loan of up to 20% of the property’s value. Both schemes are designed to reduce the size of mortgage a buyer needs.
The biggest confirmed difference is the deposit. Help to Buy required buyers to put down at least 5%, while Your First Home is expected to require only 2.5%. That could help buyers who are struggling to save, but it also means they will be borrowing more and will have less equity in their home from the outset.
Help to Buy’s equity loan was interest-free for five years. The government has only said that Your First Home will have an initial interest-free period, so buyers will need to wait for the Budget to find out how long that lasts and what charges will apply afterwards.
Help to Buy also had published regional price caps and detailed eligibility rules. Your First Home will have local price caps and a household income cap, but the levels and wider rules are not yet known.
Read more about the former Help to Buy equity loan scheme.
Our CEO Paula Higgins commented on the announcement,
“Any support that helps first-time buyers overcome the huge barriers to homeownership is welcome. It is encouraging to see the government recognise the pressure facing younger people who want a home of their own.
“Our latest 2026 HomeOwner Survey found that affordability is the biggest barrier for those wanting to buy their first home: 42% said lower deposits would help.
But a very small deposit also comes with real risks. Buyers need to be certain they can comfortably afford the monthly mortgage payments, not just get through the front door. Borrowing heavily can leave homeowners more exposed if house prices fall, particularly where they have paid a new-build premium. And risks could be compounded for those buying leasehold flats. That raises the risk of negative equity, making it harder to remortgage or move.”
Our Mortgage Expert Sarah Tucker commented,
“It’s really positive to see the deposit barrier being tackled head on. A 2.5% deposit alongside a potential 20% equity loan could make a huge difference to first-time buyers who can afford the monthly payments but simply can’t save quickly enough to get there.
The detail at Budget around income and regional property price caps will be critical. Alongside the innovation we’re already seeing from mortgage lenders, this could open the door for a lot more aspiring homeowners.”
It is too early to say whether the scheme will be right for you. A lower deposit can bring homeownership closer, but it does not make a home cheaper overall. Buyers should consider the full mortgage payment, likely future interest rates, service charges, insurance, maintenance and the terms of the equity loan.
There are a number of no deposit mortgage schemes, 1% deposit schemes and other help for first time buyers that may be more appropriate. Speak to a fee-free mortgage broker and they can talk you through the range of options.
Get fee-free mortgage advice from the award-winning expert advisers at Mortgage Advice Bureau.
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Your First Home is a demand-side measure. It may help some buyers access new-build homes that are already being built, and could improve confidence for developers to start more schemes. But it is not a substitute for building enough genuinely affordable homes in the places people need them.
Official data published this week shows new-build starts in England rose by 15% in the year to June 2026, to 136,330. In the second quarter alone, starts were 20% higher than a year earlier. But the government is still a long way from hitting its pledge to deliver 1.5 million additional homes in England over this Parliament.
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