The Labour Government will step in to make getting on the housing
ladder affordable for people able to save a small deposit, the
Prime Minister has today confirmed.
The Prime Minister is determined 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.
Andy , 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."
, Secretary of State for
Housing, Communities and Local Government, said:
We've seen too many people priced out and giving up on the dream
of ever having a home to call their own. This scheme will make
getting on the first rung of the property ladder just that bit
easier and increase access to home ownership. For those looking
for their first home, this is a Labour Government that is on your
side and fighting your corner.
Your First Home will build on the lessons learnt from previous
schemes, while retaining the benefits, giving more families the
building blocks for a better life and boosting the housing market
as we turn the page on the housing crisis the Tories left behind.
We're 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.
