UK Confirms First-Time Homebuyer Loan Scheme in October Budget
Prime Minister Andy Burnham announced the 'Your First Home' scheme at Labour's annual conference in Liverpool. It offers first-time buyers in England a government equity loan covering 20% of a new-build property's value.
- 2.5% is the minimum deposit required to access the scheme.
- £5,750 deposit and up to £46,000 in loan support on a £230,000 starter home, per Rightmove data.
- The equity loan will be interest-free for an initial period; exact terms are unconfirmed.
- Housing developers will fund the scheme's running costs, not just government budgets.
Why it matters: The scheme targets buyers without parental financial support — those unable to draw on what Burnham called the 'bank of mum and dad.'
- Ministers also say developer cost-sharing is designed to spur new home construction.
How 4 sources split on this story
Where they split: Coverage agrees on the scheme's broad terms but diverges on context: BBC News flags unresolved questions — age limits and property price caps — and draws a direct line to the 2013 Help to Buy scheme; The Independent foregrounds ministers' framing of it as a distinct Labour improvement on past programs.
Center coverage, 3 sources: The center presents the scheme neutrally, noting its similarity to past coalition-era policies and flagging key details still missing ahead of the Budget.
Left coverage, 1 sources: The left frames the scheme as Labour correcting Conservative failures on housing affordability, with ministers quoted positioning it as fairer and better targeted than previous efforts.
What’s next: The Budget on October 28 is when Chancellor Healey will confirm full scheme details.
- Pre-registration is expected to open before the end of 2026.
- Will there be an age restriction on applicants?
- Will there be a cap on the property value eligible under the scheme?
- How much total government funding will be committed?