The Prime Minister has announced new measures to make getting on the housing ladder affordable for people able to save a small deposit as part of his mission to bring back hope for young people who are struggling with the cost of living and want to be able to buy their own home.
A new equity loan scheme to help first-time buyers to purchase new build homes will be set out by the Chancellor at the Budget next month, with pre-registration open by the end of 2026. Support will be targeted to help those without access to the ‘bank of mum and dad’ to get on the housing ladder to buy a modest new build home.
The ‘Your First Home’ equity loan scheme will be open to first-time buyers with just a 2.5% deposit. It will provide a 20% equity loan to help first-time buyers buy a new build home, with an initial interest-free period to ensure housing costs are affordable.
The scheme will be funded by reprioritising existing government budgets. Developers will also contribute to the running costs of the scheme, which will give industry confidence to bring forward much-needed, high-quality new homes across the country.
The contributing developers will pay a fee related to property values to participate in the scheme, which will enable Your First Home to cut costs for buyers and taxpayers. The new equity loan scheme comes on top of the Government’s wider support to first-time buyers, including the introduction of a new, permanent Mortgage Guarantee Scheme.
Commenting, Stephen Morgan, MP for Portsmouth South, said:
“Here in Portsmouth, we have seen too many people priced out and giving up on the dream of ever having a home to call their own.
“This new scheme will make getting on the first rung of the property ladder just that bit easier and increase access to home ownership. For those in our city looking for their first home, Labour is a party that is on your side and fighting your corner.
“This Government delivering a new generation of equity loans in a Labour way, targeting support to those first-time buyers who need support the most and who don’t have the benefit of a large deposit from the ‘bank of mum and dad’.”
Andy Burnham, Prime Minister, said:
“Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own. “
“So, we will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the Bank of Mum and Dad.
“Your First Home will get them the keys to their own front door and give builders the confidence to deliver the high-quality new homes the country needs. This Labour government is bringing back hope for people across the country.”
