New scheme for first-time buyers goes live in April
Summary
The Government has announced Your First Home, a new equity loan scheme for first-time buyers purchasing new-build homes in England, backed by £4.7 billion of government-backed loans. The scheme is due to open for pre-registration by the end of December, with full applications from February 2027 and first loans from April, alongside changes to Lifetime ISA withdrawal rules and a future First Time Buyer ISA.
Why it matters
The scheme is likely to influence demand for new-build housing and could affect pricing, sales rates and buyer behaviour in parts of the market. Surveyors involved in valuation, development advice or new-build work should note the potential for market distortion and the emphasis on buyer protection and quality standards.
Key points
- Your First Home will offer 20% equity loans for first-time buyers of new-build homes only.
- Minimum deposits will be 2.5%, with income and property price caps applying.
- The scheme is expected to support around 70,000 households and 20,000 new homes.
- Industry concerns focus on possible price inflation and a two-tier market, especially in London.
- Calls have been made for stronger new-build quality standards and access to an independent ombudsman.
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