The government has announced a new scheme aimed at helping more first-time buyers purchase a new-build home with a smaller deposit.
Called Your First Home, the scheme is expected to allow eligible buyers in England to purchase a property with a deposit of just 2.5%, supported by a government-backed equity loan worth up to 20% of the property’s value.
The scheme is particularly aimed at people who can afford the ongoing cost of owning a home but have struggled to save a large deposit or do not have financial help from family.
How Your First Home Could Work
Under the proposed scheme, the government equity loan would initially be interest-free, helping to reduce the amount buyers need to borrow through a traditional mortgage.
For example, a buyer purchasing a £230,000 starter home could potentially provide a £5,750 deposit and receive up to £46,000 through the government equity loan, although the final eligibility rules and limits are still to be confirmed.
The scheme will focus on new-build properties and is expected to include household income limits and local property price caps to ensure support is targeted towards buyers who need it most.
Helping Buyers Without Family Support
One of the main aims of the scheme is to help people who cannot rely on the so-called ‘Bank of Mum and Dad’ to fund a large deposit.
High rents and rising living costs can make it difficult for first-time buyers to build significant savings while also paying for their existing accommodation.
By reducing the initial deposit requirement, the government hopes more people will be able to consider buying their first home.
Support for the New-Build Market
The scheme is also designed to support the housebuilding industry.
Developers joining the programme are expected to contribute towards its running costs. The government says the initiative could encourage developers to bring forward more new homes while supporting demand for new-build properties.
The Home Builders Federation has welcomed the announcement, saying a well-designed equity loan scheme could help address challenges facing both first-time buyers and the wider housing market.
When Will the Scheme Start?
Your First Home is not yet open for applications.
The Chancellor is expected to provide further details at the Autumn Budget on 28 October 2026, including the scheme’s costs, eligibility rules and implementation timetable. Pre-registration is expected to open before the end of 2026.
The announcement marks a return to a Help to Buy-style approach, although the government says the new scheme will be more targeted towards buyers who face a genuine deposit barrier.
For first-time buyers, the key question will be whether the final rules make the scheme accessible while keeping new-build homes affordable in different parts of England.
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