A new help-to-buy scheme aimed at assisting first-time buyers in England has been announced by Andy Burnham, the Prime Minister. The initiative, titled "Your first home", is designed for young individuals who lack financial support from family and have struggled to save for a substantial deposit.

Key Features of the Scheme

Under this program, first-time buyers will receive a 20% equity loan to facilitate the purchase of a new-build home. The scheme includes:

  • An initial interest-free period.
  • A minimum deposit requirement of just 2.5%.
  • Income and deposit caps to exclude high earners and those with significant savings.
  • Price caps to ensure affordability, allowing only modest homes to be purchased.

In an interview with the Guardian prior to the Labour party conference in Liverpool, Burnham stated:

“

"Too many young people are struggling with housing, with many giving up hope on ever having a home to call their own. So we are going to help more first-time buyers on to the housing ladder, especially those who can’t call on the bank of mum and dad. ‘Your first home’ will get them the keys to their own front door, and give builders the confidence to deliver the high-quality new homes the country needs."

Additional Measures

Burnham also revealed plans to enhance the powers of local leaders to reclaim long-term empty and derelict homes, reversing previous Conservative changes. The government, under Keir Starmer, had advocated for a new help-to-buy version but was initially sidelined by then Chancellor Rachel Reeves, who prioritized housing supply.