LONDON: UK Prime Minister Andy Burnham announced a new government-backed housing plan to help first-time buyers in England purchase new-build homes with a deposit as low as 2.5%, targeting people who cannot rely on financial help from their families.
The “Your First Home” scheme will provide assistance to eligible buyers. The loan will be interest-free for an initial period, while buyers will cover the remaining cost through a mortgage.
The plan is designed to address one of the biggest barriers facing first-time buyers, saving enough money for a large down payment. It will target households based on income and will include local property price limits to keep the support focused on eligible buyers.
The government said the program will also support the construction of new homes by encouraging developers to participate. Developers will pay a fee based on property values to help cover the scheme's costs.
Chancellor John Healey is expected to provide full details in the government's October budget. Pre-registration is expected to open by the end of 2026.
Andy Burnham announced the plan ahead of the Labour Party's annual conference in Liverpool. He said the scheme would help people who have struggled to buy a home without support from what is often called the “bank of mum and dad.”
The government said funding will come from reprioritizing existing government budgets. The announcement revives elements of the former Help to Buy model.
