The new Your First Home programme for first-time buyers in England could potentially increase the number of houses produced annually by British builder Bellway by 10%, according to its CEO, Jason Honeyman. This initiative comes as the government prioritizes housing amid a chronic shortage of homes, and the announcement by Andy Burnham two weeks ago led to a surge in housebuilders’ shares by over 10%.

Details of the Scheme

The Your First Home programme is designed to be more targeted than previous help-to-buy initiatives. Key features include:

  • Household income caps to exclude high earners.
  • Price caps to ensure affordability for modest homes.

The full details, including the launch date, are expected to be revealed by John Healey during his first budget as chancellor on 28 October. The scheme is applicable only in England and aims to assist prospective first-time buyers looking to purchase new-build flats or houses.

Eligible buyers will receive a government-backed equity loan worth 20% of the purchase price, with a minimum deposit requirement of just 2.5%.

Market Implications

While Honeyman acknowledges that the scheme could significantly support first-time buyers, he also warns that it might slow the market temporarily as some buyers may choose to wait for its launch. He stated that it could help Bellway return to an annual completion rate of 10,000 homes by the 12-month period starting next September at the earliest.