UK unveils new help-to-buy scheme for first-time home buyers
The UK government plans a new scheme to help first-time buyers without family financial support purchase new-build homes with a small deposit. The programme was announced by Andy Burnham ahead of the Labour party conference.
UK Prime Minister Andy Burnham has announced a new government-backed home purchase scheme called "Your first home," aimed at first-time buyers in England who have steady income but cannot save a large deposit and lack financial help from family.
Under the scheme, buyers will receive a 20% equity loan toward a new-build property, with an initial interest-free period, while the minimum deposit required will be just 2.5%. To ensure the programme reaches those who need it most, household income and savings caps will apply, along with price caps limiting purchases to modest homes.
Speaking to the Guardian ahead of Labour's party conference in Liverpool, Burnham said too many young people are struggling with housing and losing hope of ever owning a home. He said the new scheme would give such buyers the keys to their own front door while giving builders confidence to keep delivering new homes.
The government also plans to strengthen local authorities' powers to take over long-term empty and derelict properties, reversing changes made under the previous Conservative government. The period a home must sit empty before councils can intervene will be cut from two years to six months.
The new programme is a revised version of George Osborne's 2013 help-to-buy scheme, which supported around 387,000 buyers but drew criticism for also benefiting people who could have bought homes anyway, contributing to rising prices. The new scheme will be funded by reprioritising existing government budgets and is expected to open for registration by the end of 2026. Developers will pay a fee tied to property values to take part.
Burnham rejected suggestions the scheme would simply drive house prices higher, stressing that the government is also working to boost the overall housing supply. However, Housing Secretary Angela Rayner recently acknowledged there is only a "slim chance" the government will meet its target of building 1.5 million homes in England before the next election.
