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Prime minister Andy Burnham has unveiled a new scheme to help more first-time buyers in England on to the property ladder.
The Your First Home scheme was a flagship announcement at Burnham’s first Labour Party conference as leader.
What is the Your First Home scheme?
It will offer government-backed equity loans of 20% to those buying new build homes in England, who have at least a 2.5% cash deposit towards their purchase.
The scheme is expected to work in a similar way to the previous Help to Buy equity loan programme, which ran for 10 years from 2013 until 2023.
Under Help to Buy, buyers needed a slightly bigger 5% cash deposit towards their purchase. They could then access a 20% equity loan from government, which was interest free for five years.
Who will be eligible?
The Your First Home scheme will have strict eligibility criteria. There will be a maximum cap on household income as well as property price caps for specific geographical areas, such as London, where house prices tend to be the highest.
Developers who want to be involved in the scheme will be expected to contribute to fund the programme.
Details in the Autumn Budget
While the scheme has been announced, it is not yet open. More details are expected to be given in the forthcoming Autumn Budget.
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