England plans 20% equity loan scheme for first-time buyers

Andy Burnham has announced “Your first home”, a proposed scheme offering eligible first-time buyers in England a 20% equity loan towards a new-build home. Buyers would need a minimum deposit of 2.5%, with an initial interest-free period.

The plan is aimed at buyers with regular incomes who lack family financial support or have struggled to save a large deposit. Income, deposit and property price caps are proposed, but the final rules and loan terms have not been set out.

Housing Secretary John Healey is due to announce the programme in the budget, with registration expected to open by the end of 2026. Officials say existing government budgets would be reprioritised, and developers would pay a fee linked to property values towards running costs. The funding details remain unclear.

The scheme revives help-to-buy-style support. An earlier programme supported 387,000 people, but faced criticism that it benefited buyers who could have purchased without assistance and contributed to higher house prices. Burnham argued the new scheme would focus on those needing support; its effects on prices and supply are not yet known.

Burnham also proposed changes to empty dwelling management orders, which councils can use to return long-term vacant homes to use. The qualifying vacancy period would fall from two years to six months, and councils would face fewer evidential requirements at the residential property tribunal.