In a GOV.UK press release published on Saturday 26 September 2026, the government said a new England-only equity loan scheme, branded Your First Home, will be confirmed at next month's Budget. The stated aim is to support more first-time buyers into home ownership while also giving targeted support to the new-build market. At this stage, ministers have announced the broad structure rather than the final rules. The press release sets out the deposit level, the equity loan share and the fact that the scheme will apply to eligible new-build purchases from developers that sign up, but it leaves costs, timing and the detailed eligibility tests for Budget day.
On the terms published so far, the scheme is expected to allow a first-time buyer to purchase with a 2.5% deposit, backed by a 20% government-backed equity loan. That would leave the remaining balance to be met through a standard mortgage or other private finance, reducing the size of the main mortgage compared with a 95% loan. The government also says the equity loan will come with an initial interest-free period. That is the basis for its claim that some buyers could save hundreds of pounds a month against a 95% mortgage, although the exact saving will depend on purchase price, mortgage rate, loan conditions and the final design announced at the Budget.
The scheme is restricted in several important ways. It is for first-time buyers, it applies in England, and it is tied to new-build homes sold by developers that have joined the scheme. Buyers considering older properties, shared ownership or homes from non-participating builders would not fall within the outline set out so far. Targeting will also matter. Ministers say the scheme will include a household income cap and local property price caps, with the detail to be published at the Budget. Used together, those controls would limit access both by earnings and by the value of the property, which is how ministers intend to focus support on households facing the sharpest deposit barrier rather than offer a universal subsidy across the market.
The policy case set out by the government is twofold. First, it is aimed at buyers who can manage regular housing costs but cannot assemble a large enough deposit to enter the market. Secondly, ministers present it as support for a new-build sector facing pressure from international economic conditions and higher construction costs. That second objective is significant. By tying assistance to new-build homes, the announcement is not only about access to ownership; it is also designed to support sales rates for developers and, in turn, help sustain housing supply. The practical effect will depend on take-up and on the final commercial terms published next month.
Developers will be expected to make a contribution when they sign up to the scheme. That element is important because only homes sold by participating developers will qualify, which means the coverage of the policy will rest partly on whether major housebuilders decide the terms are workable. For ministers, that creates a balancing exercise. If the contribution required from developers is set too high, participation may be weaker than hoped. If it is set too low, the government may face sharper questions about cost and value for money once the full Budget documents are published.
For buyers, the immediate position is that the announcement provides a policy outline rather than an operational scheme. Key points remain unresolved, including the income cap, local price caps, the length of the interest-free period, the overall public cost and the implementation timetable. Mortgage advisers, developers and households will need those details before they can judge affordability or likely demand with confidence. For the housing market, Budget confirmation will show whether Your First Home is intended as a tightly targeted measure or a broader intervention in the new-build sector. Until then, the announcement should be read as a statement of ministerial intent: reduce the deposit hurdle for first-time buyers, and direct that support through new-build supply in England.