Britain · updated 1h ago · 3 min read
Andy Burnham Announces Your First Home Scheme With 2.5% Deposit And 20% Equity Loan
Your First Home provides a 20% government-backed equity loan for new-build purchases. First-time buyers need a 2.5% deposit to access the scheme.
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2 of 3 outlets skipped it: equity loan repayment terms include timelines in some reporting.
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Burnham unveils equity loan
Prime Minister Andy Burnham announced the “Your First Home” scheme to help first-time buyers in England get onto the housing ladder with a deposit of 2.5% and a loan worth 20% of a new build property’s value. Burnham said the policy would step in for people without support from the “bank of mum and dad,” and he argued, “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own.” The government said the scheme would be confirmed in next month’s Budget, with an initial interest-free period for the equity loan and more details expected in that Budget.
Housing Secretary Angela Rayner said the plan would “build on the lessons learned from previous schemes, while retaining the benefits,” as the government framed it as targeted support for first-time buyers who cannot afford a large deposit. The Conservatives warned the policy would leave first-time buyers taking on more debt and risks “pushing up the price of new homes.”
Budget timing and caps
The government said it would confirm “Your First Home” in next month’s Budget, and it described the policy as a revival of “Help to Buy” aimed at increasing demand for house building and assisting first-time buyers. The scheme was set to support 2.5% deposits backed by 20% government-backed equity loans, and it said buyers could purchase a new-build property with a mortgage of 75% of the value of the property, up to £600,000. The government said the scheme would set a household income cap with local property price caps, and it said housing developers would be expected to make a contribution when signing up to help cover costs.
The BBC said the policy was similar to initiatives from previous governments, including the coalition’s Help To Buy scheme introduced in 2013 by then-Chancellor George Osborne. The BBC also said ministers had not yet confirmed whether there was an age restriction on the scheme, or a cap on the price on the value of the property.
Debate over debt and delivery
Katie Lam accused Labour of wanting first-time buyers to “take on even more debt to afford the few homes that have been built,” and she said taxpayers would take a “stake in their homes” and be “picking up the bill for months.” Burnham said the scheme would give builders the “confidence to deliver the high-quality new homes the country needs,” and he tied the announcement to his arrival in Liverpool ahead of his first Labour Party conference since becoming prime minister. Rayner told the BBC earlier this month that there was only a “slim chance” the government would meet its target of building 1.5m homes in England by the next election, while she said she was “not giving it up.”
The BBC said BBC Verify analysis showed a decline in the number of new houses being built during Labour's first year in power, continuing a fall that began under the Conservatives. The Guardian said Burnham also unveiled plans to strengthen the powers of local leaders to take over long-term empty and derelict homes, reversing changes made by the Conservatives.