UK Budget: What is the ‘Your First Home’ scheme announced by Chancellor John Healey? Check eligibility, property price limits, and other details

UK Chancellor John Healey today announced a new scheme to help first-time homebuyers purchase their first property, including those who cannot rely on financial support from their families. Healey confirmed £4.7 billion in government-backed lending for the Your First Home scheme, which was first announced in September. The initiative aims to help eligible buyers get onto the property ladder by reducing the deposit required to purchase a newly built home.

Also Read: UK Budget 2026 Highlights

The Chancellor described it as “a new scheme for first-time buyers who don’t have Bank of Mum and Dad behind them”. “Hope starts with a home. A route off the streets. A secure home to raise your kids. The keys to your own front door. Delivered to the British people by this Labour government,” Healey said while announcing the scheme.

What is the Your First Home scheme?

The Your First Home scheme will allow eligible first-time buyers to purchase newly built houses. The scheme allows buying houses with deposits as low as 2.5%, supported by a 20% government-backed equity loan.

The scheme will offer an initial interest-free period on equity loans, which may help buyers save hundreds of pounds per month compared with a 95% mortgage.

However, the government will introduce household income limits and local property price caps to ensure the support reaches buyers who need it most.

What are the eligibility criteria?

The scheme will have different income and property price limits depending on where buyers intend to purchase a home.

The household income cap will be:

• Outside London: £110,000 per household.
• Inside London: £140,000 per household.

Property price caps will be based on median prices in local authority areas. In London, the caps will be £650,000 for inner London and £500,000 for outer London.

The minimum deposit requirement will be 2.5%, while the maximum will be 15%.

Eligible buyers will be able to access equity loans with an initial five-year interest-free period. Interest charges will gradually increase after the first five years.

How will the scheme be funded?

Property developers will be expected to contribute towards the scheme when they sign up. Contributions will be calculated on a sliding scale to protect smaller developments.

The government will also cap annual funding and work with developers and lenders to monitor demand for the initiative.

The scheme is expected to help around 70,000 people. However, note that it is only be available in England, and not in Wales, Scotland or Northern Ireland.

As per a report of Wales247, there is a separate Help to Buy Wales scheme for buyers in Wales, which is currently scheduled to run until 31 March 2027.