This article discusses announced proposals and Justin’s opinion. Full rules and costs need checking after the Budget announcement.
What has been announced?
The government announced Your First Home on 26 September 2026. Its initial announcement describes a new equity-loan scheme for first-time buyers purchasing new-build homes in England from participating developers. It is expected to support a 2.5% deposit alongside a 20% government-backed equity loan, with an initial interest-free period.
Household income limits and local property price caps are planned. Further details, costs and implementation dates are due at the Budget. These are announced proposals, rather than a complete set of application rules. Buyers should not assume they qualify or that applications are already open. Government announcement ↗
For someone who can manage a mortgage payment but struggles to build a deposit, a smaller deposit requirement could make a meaningful difference. That does not remove the need to consider the full cost of buying and owning a home.
How could it help the market?
The property market needs people coming in at the bottom of the ladder. My concern is that when developers slow or stop building and properties sit empty, the wider market loses momentum.
Helping more first-time buyers get started could encourage movement and give developers a reason to bring more homes forward. It is a useful opportunity, although we will need to see how the scheme works in practice.
JUSTIN MOY · EHF MORTGAGES
Justin’s view
Why new builds are only part of the picture
For me, this is a start, rather than a complete solution. My biggest concern is the focus on new-build homes. If you want to buy an existing property, you could still face exactly the same deposit problem, even if that home is only a few years old.
I question why an older home should sit outside the support simply because someone has lived in it before. A well-kept property built 15, 20 or 30 years ago can still be a fantastic home and good security. A newer property might have upgraded features, but that does not automatically make it a better risk. Restricting the scheme to new builds leaves a significant part of the market untouched.
I also think we need to consider people making their second or third move. Helping first-time buyers gets things started, but there needs to be movement further up the ladder too. My concern is that developers could become more focused on smaller homes aimed at first-time buyers, rather than the larger family properties that home movers need.
Who needs support, and what are the future costs?
I would like the support to reach people who actually need it. If someone already has a substantial deposit, they may have other suitable options. We need to be careful that funding is not used up by buyers who could purchase without the scheme, leaving less available for those facing a genuine deposit barrier.
We must also learn from Help to Buy. Buyers need to understand future equity-loan costs from the beginning, rather than forget about them during an initial interest-free period. As brokers, we have a responsibility to explain the longer-term commitment clearly.
Flats need careful consideration too. Service charges and valuation issues can affect whether a property is affordable and suitable. Making the initial purchase easier will not solve everything if the ongoing costs become difficult to manage. I want buyers to look beyond getting the keys and think about how the arrangement will work in the years ahead.
Questions to ask before buying
A smaller deposit is only one part of the decision. Before committing, ask how the mortgage and equity loan will work together, what happens when any interest-free period ends, and what costs you could face when selling or repaying.
The final Your First Home terms need checking once they are published; the previous Help to Buy rules should not be assumed to apply.
If you are considering a flat, ask about service charges, any planned increases and the property’s condition. Compare the ongoing costs alongside the purchase price.
I would also want clarity where one partner has previously owned a home and the other has not. The detailed eligibility rules will need to clarify cases like this, so avoid treating assumptions as a confirmed answer.
Use the announcement as a reason to prepare and ask questions, rather than rush into a property decision. Gather details of your income, savings and regular commitments, and think about the type of home you actually want. A new build may suit you, or an existing home may be the better fit.
Preparing for your next step
I believe the scheme has a useful place, but buyers need clear guidance about its limitations and future costs. A conversation about your circumstances can help you compare the available routes before deciding whether to wait for the scheme or explore another option.
Ready to talk about your first home? Get in touch with Justin to discuss your options.
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