Andy Burnham unveils Your First Home scheme with 2.5 per cent deposit

A fresh chapter in state intervention for the property market opened as Prime Minister Andy Burnham announced a resurrected help-to-buy initiative designed to assist first-time buyers struggling with high living costs and limited family wealth.

Unveiled as the Prime Minister arrived in Liverpool for the annual Labour Party conference, the programme is titled Your First Home. It targets individuals across England who possess a regular income but have been unable to accumulate a substantial deposit or rely upon financial assistance from relatives, colloquially known as the "bank of mum and dad".

Media additions

"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."

Andy Burnham, Prime Minister, via The Independent

Under the parameters outlined by Downing Street, prospective buyers can secure the keys to a newly built home using a deposit of just 2.5 per cent. This is complemented by an equity loan covering 20 per cent of the property's overall value, which will remain interest-free initially to ensure monthly outlays remain manageable. According to Rightmove data cited in the reporting, the national average price for a starter home sits at £230,000, meaning a participating buyer could put down a deposit of £5,750 and access a loan of up to £46,000.

The policy bears structural similarities to the coalition government’s previous Help to Buy programme, introduced by then-Chancellor George Osborne in 2013, which ultimately delivered hundreds of thousands of equity loans. However, ministers insisted that adjustments have been made to avoid the pitfalls of past iterations. Household income caps, deposit ceilings, and local property price restrictions will be enforced to exclude high earners and ensure support is directed strictly toward those most in need. Full specifications regarding these thresholds will be presented at the Budget by Chancellor John Healey.

Funding for the scheme will be drawn from reprioritising existing government budgets, though uncertainty lingered regarding whether funds would be diverted from pre-allocated housebuilding budgets or extracted via wider departmental savings. Housing developers participating in the scheme will also pay a fee scaled to property values to cover operational costs, a measure ministers argue will provide the construction industry with the certainty required to accelerate housing delivery.

Housing Secretary Angela Rayner defended the intervention against criticisms regarding housing supply. Rayner previously acknowledged that only a slim chance remained for the administration to hit its target of building 1.5m homes in England by the subsequent general election, yet argued the new policy provides a vital stepping stone.

"This scheme will make getting on the first rung of the property ladder just that bit easier and increase access to home ownership. Your First Home will build on the lessons learned from previous schemes, while retaining the benefits."

Angela Rayner, Housing Secretary, via Inews

The broader political landscape surrounding the announcement features intersecting debates on welfare reform, regional housing powers, and economic growth. Alongside the housing announcements, the administration revealed plans to shorten the mandatory waiting period for young people on health and disability benefits to access guaranteed employment schemes from 18 months down to three months. Furthermore, local authorities are slated to receive strengthened powers via streamlined Empty Dwelling Management Orders, permitting councils to seize long-term empty properties after six months rather than two years to combat local housing shortages.

For readers navigating the politics of housing, attention now pivots toward Westminster.

• October 28: Chancellor John Healey is scheduled to deliver the Budget, where full financial provisions, exact caps, and implementation timelines for Your First Home will be formally published.
• Late 2026: Pre-registration for the equity loan scheme is expected to open to prospective first-time buyers across England.