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28 September 2026

The new Your First Home scheme

The new Your First Home scheme

The new "Your First Home" scheme

The Government has announced a proposed equity loan scheme called "Your First Home", designed specifically to help first-time buyers who don't have access to a large deposit or the "Bank of Mum and Dad".

The important points announced so far are:

  • England only initially.
  • It is aimed at first-time buyers purchasing a new-build home.
  • Buyers would need a deposit of just 2.5%.
  • The Government would provide an equity loan of up to 20% of the purchase price.
  • That potentially means the buyer only needs a 2.5% cash deposit, with the remaining 77.5% financed through a conventional mortgage.
  • It is intended to help buyers purchase modest new-build properties.
  • The Government says it is particularly aimed at people who don't have family financial support.
  • The full details, including property price limits, eligibility and exactly how the equity loan will work, are expected to be confirmed at the October 2026 Budget.
  • Pre-registration is expected to open by the end of 2026.

An example

If the scheme ultimately applied to a £300,000 new-build:

2.5% buyer's deposit: £7,500
20% Government equity loan: £60,000
Mortgage required: £232,500

So the buyer would effectively have access to 97.5% of the purchase price, but only £232,500 would be a conventional mortgage.

The crucial point is that the 20% isn't a grant. It is an equity loan, so the Government will have an interest in the property and the precise repayment arrangements will matter.

Why this could be interesting for York

This could have a noticeable effect on the entry-level new-build market around York, depending on the eventual price cap.

York's new-build prices can be relatively high, so the price ceiling will be particularly important locally. If the Government sets the ceiling too low, relatively few York properties may qualify. If it is set at a level reflecting regional prices, the scheme could potentially bring a significant number of first-time buyers into the market.

It is also worth remembering that this isn't the only measure being developed. The Government has separately been consulting on a new First-Time Buyer ISA, intended eventually to replace the Lifetime ISA for new savers.