New first-time buyer scheme to be confirmed at Budget

[sbplanet]

"The government has today (Saturday 26 September 2026) announced a new equity loan scheme - Your First Home - in England will be confirmed at next month’s Budget, to support more people into homeownership.

This is expected to support 2.5% deposits, backed by 20% government-backed equity loans, for prospective first-time buyers purchasing a new-build property from a developer signed up to the scheme.

People will be able to access equity loans with an initial interest free period, meaning that those who use the scheme could save hundreds of pounds per month compared to a 95% mortgage.

The Your First Home scheme will help tackle the deposit barrier for first-time buyers who would be unable to afford their first home otherwise, building on the government’s existing work to help more young people and families onto the housing ladder. The scheme will also set a household income cap with local property price caps to further ensure support is targeted at those who need it, the detail of which will be set out at Budget.

With the new build housing market currently facing challenging headwinds driven by international economic pressures and rising construction costs, the scheme will also act as a much-needed stimulus to support the market and boost housing supply.

Developers will be expected to make a contribution when signing up to the scheme to help cover costs.

Further details, including costs and implementation timelines, will be announced by the Chancellor at the Budget next month. "

https://www.gov.uk/government/news/new-first-time-buyer-scheme-to-be-confirmed-at-budget

May the UK housing Ponzi continue.

So many clueless FTBs will become trapped by high service/management charges in the end. Another way for the government to fill builders’ pockets (though I love modern houses for their insulation and soundproofing).

So the tax payer will back 20% of the loan - and the applicants have to buy an overpriced new build shoe box. You just couldn't make it up, what a dreadful trap for the young.
Blatantly bailing out their mates again - just like the last "help to sell" scheme. How awful.

I hope that the government realise that the U.K. property market probably has a bit of a fall coming. It certainly doesn’t feel as if permanently high interest rates have been priced in

Absolutely desperate to try and keep the plates spinning - so that they are not holding them when they inevitably wobble.

Sounds the same as the Tory’s ‘Help to Buy’ scheme from 10-15 years ago.

I can't see how it will help? Yes finding a deposit is hard for a first time buyer now but that arrangement would put them at real risk of negative equity while paying a fortune for the mortgage still

Oh god and it's only for new builds! Last time this happened I watched (am in a job linked to the industry) as the developers just bumped up the prices of their FTB homes. So many people ended up unable to sell as new homes tend to drop in value for a bit, so they had negative equity

It's not help for buyers it's help for house builders

Surely better for govt to give a boost to housebuilders by investing in new social housing stock?

If you have an 18 year old encourage them to open a LISA now before they disappear and FTB are expected to buy a new home that is usually very small and hugely overpriced.

House prices will go up by however much is on offer....

But only for new-builds, pulling demand from older properties.

Big builder share prices will rise on Monday.

This govt is just repeating the same old tricks. I hope FTB don’t fall for it.

https://www.bbc.co.uk/news/articles/cwyz7332dd6o

FTBs will absolutely fall for it. People are still buying shared ownership flats after all.

People are hopefully less dumb this time around, lots of younger people seem to be slowly waking up to the 50k debt for Useless bit of Paper = Scam, maybe they will join the dots for property as well? New-build sales have really collapsed, just a matter of time before they tried another mad scheme I suppose?

They could try zero deposit mortgages, but the bond market still runs the monthly debt cost, they can"t control that.

Picture says it all, trying to look like smart urban professionals while at the same time being as dumb as rocks.

Young people aren't dumb just because they can't afford the alternative.

It's crippling to afford private rent and save. We have encouraged our son (22) to stay home for now and save but I also see the horrible posts that call men who do this, pathetic. He's just put himself through 4 years of uni to get his masters so alreasy has £60k of student debt! Drives a 20 year old car.....

We live in social housing but honestly no one can even hope for that anymore either.

Where do you expect them to live?

"He bought a 35% share of the £585,000 flat"

That was the first (very) dumb move.

One thing is for sure though, people are definitely living somewhere.

"This is a message echoed by property platform Rightmove, which says as of August, only 50% of flats listed for sale nationally successfully find a buyer, compared to 65% of houses."

No wonder AB has got his orders from the bankers to get those plates spinning again!

All this does is encourage developers to build more over priced bad quality new builds. I wouldn’t touch one with a barge pole.

Help to buy was awful. The repayment if you sold at no profit meant you were out of pocket.

This scheme won’t make more homes magically appear. Not all first time buyers buy leasehold flats either. Many buy freehold houses. Prices will go up if more buyers want homes but there’s limited supply. The government is nowhere near building its target so there’s no glut of new properties for the newly minted first time buyers to buy. This scheme does nothing for people buying in expensive areas either. You just need borrow more! Except there’s still the big issue of affordability!

There’s literally thousands of new houses near me. But they’re SO expensive. First time buyers don’t have the salary multiple to get the mortgage. Let alone a deposit.

@fashionqueen0123 This scheme is to help with the deposit. Not much good if you cannot afford a mortgage though! Too many single people want to buy now and that pushes prices up - and divorced couples needing 2 homes instead of one bigger one. This scheme will work in run down towns with low prices but if it’s only for new builds, that’s problematic as most lose value if there’s no house inflation. That just leaves loans snd the equity has gone.

It's good that everyone on here can see that this is just another attempt at a back hander to the government's corporate mates.
It's ageism against the young, who have already had to deal with so much ageist, discriminatory policy against them.
All the parties are the same nowadays.