Prime Minister Andy Burnham plans “Your First Home,” a scheme that would give first-time buyers in England a 20% equity loan for new-build homes if they have a 2.5% deposit. Labour says the loan would have an initial interest-free period; details are due in next month’s Budget.
Burnham said the scheme is intended in part for people without family support. Pre-registration is due to open before the end of the year, but ministers have not confirmed whether there will be an age restriction or a property-price cap. Funding is expected to come from reprioritised existing budgets, with housing developers contributing to running costs.
The plan resembles the coalition government’s Help to Buy scheme, introduced in 2013. Help to Buy initially allowed buyers to put down a 5% deposit on a new-build home, with a shared-equity loan covering up to 20% of the cost and an interest-free period of five years.
