What's been announced
On 26 September 2026, the government announced a new scheme for first-time buyers called Your First Home. It's designed to make the deposit — usually the single biggest barrier to buying a first property — smaller, by pairing a reduced cash deposit with a government-backed equity loan on new-build homes (gov.uk).
How it's meant to work
Under the scheme as announced, first-time buyers would need a deposit of just 2.5% of the purchase price, with the government providing an equity loan of up to 20% of the property's value on top. The equity loan is expected to carry an initial interest-free period. It applies only to new-build homes bought through developers who sign up to the scheme, and those developers are expected to make a financial contribution towards the cost of running it (gov.uk; ITV News).
To put that in cash terms: a worked example reported by Estate Agent Today used a £230,000 new-build home, where a buyer would need a deposit of £5,750 (2.5%) alongside access to up to £46,000 in equity loan support (20%), with a mortgage covering the remainder (Estate Agent Today). For comparison, a standard 95% mortgage — the most widely available low-deposit route today — still requires a 5% cash deposit, roughly double what's being proposed here (see our mortgage deposit guide).
Who announced it, and what happens next
The scheme was announced by Prime Minister Andy Burnham, who said it would "get them the keys to their own front door." Chancellor John Healey is expected to confirm the full costs, eligibility rules and implementation timeline at the Autumn Budget on 28 October 2026. Housing Secretary Angela Rayner also welcomed the announcement (ITV News).
What's confirmed — and what isn't, yet
Confirmed so far: the scheme is for first-time buyers only, it applies to new-build properties in England, the deposit is 2.5%, and the equity loan is up to 20% with an initial interest-free period.
Still to be set out at the Budget: the household income cap and local property price caps that will determine who qualifies, the exact date applications or pre-registration open (industry reporting points to pre-registration by the end of 2026), and the full cost to the Treasury. Because none of these details are locked in yet, treat any specific figures beyond the headline percentages as provisional until the Budget confirms them (gov.uk).
The scheme as announced covers England only. There's no indication yet of an equivalent scheme in Scotland or Wales, where housing policy is devolved.
Early industry reaction
Reaction from property and mortgage industry figures reported so far has been broadly positive. Mark Harris of SPF Private Clients argued the scheme addresses a weakness of its predecessor, saying "Help to Buy worked best for house builders, not so much for first-time buyers." Savills' Lucian Cook suggested the government could "enjoy a decent financial return on its investment" given current property prices, while Knight Frank and Rightmove both welcomed a measure aimed at both supply and affordability (Estate Agent Today).
What this means if you're saving for a first home
There's nothing to apply for yet, and no pre-registration is open at the time of writing. If you're currently saving towards a deposit, the sensible approach is to carry on as normal — keep building your deposit, and don't delay a purchase you can already afford in the hope of qualifying for a scheme whose rules aren't finalised. Once the Budget confirms the income and price caps, it should become clear fairly quickly whether the scheme would apply to the kind of property and area you're looking at.
It's also separate from stamp duty relief for first-time buyers, which already gives relief on properties up to £500,000 in England (see our guide to first-time buyer stamp duty relief) — the two aren't mutually exclusive, though how they'd interact in practice will depend on the scheme's final rules.
We'll update this page, or publish a follow-up, once the Budget confirms the details on 28 October. See our full Autumn Budget 2026 coverage for everything else in play that day.
Frequently asked questions
What is the Your First Home scheme?
A government scheme announced on 26 September 2026 that lets first-time buyers purchase a new-build home with a 2.5% cash deposit, backed by a government equity loan of up to 20% of the property's value. Full rules are due to be confirmed at the Budget on 28 October 2026.
How much deposit will I actually need?
2.5% of the purchase price as cash, as announced. On a £230,000 new-build, that works out to £5,750, with up to a further £46,000 available as a 20% government equity loan and a mortgage covering the rest.
Does the scheme cover existing homes, or new-builds only?
New-build homes only, bought through developers who sign up to the scheme. There's no indication it will extend to resale properties.
Is the scheme available in Scotland or Wales?
Not as currently announced. It covers England only, and housing schemes like this are devolved, so Scotland and Wales would need their own separate equivalents if they choose to introduce one.
Does this replace first-time buyer stamp duty relief?
No, it's separate. First-time buyer stamp duty relief already applies on properties up to £500,000 in England (see our relief comparison guide), and nothing announced so far suggests the two schemes are mutually exclusive — though exactly how they interact will depend on the final rules confirmed at the Budget.
When can I apply?
There's nothing to apply for yet. No pre-registration is open at the time of writing, though industry reporting points to pre-registration opening by the end of 2026, pending confirmation of full eligibility rules at the 28 October Budget.
This page is for general information and doesn't constitute financial or legal advice. Everything above marked "reported" or "proposed" is not confirmed government policy — always check GOV.UK and HM Treasury's official Budget documents directly before making a financial decision.