New first time buyer scheme: Your First Home – What we know so far

If you’re struggling to take your first step onto the property ladder, there’s fresh hope for first time buyers. On Saturday 26th September, the government announced that a brand-new equity loan scheme, called Your First Home, will be officially confirmed at next month’s Budget.

The Your First Home scheme is expected to support eligible buyers with a 2.5% deposit and a government-backed equity loan of 20% of the property’s value when purchasing an eligible new-build home.

It’s early days, with many of the finer details such as income and property limits, associated costs, and an official launch date still to be confirmed, but here’s everything we know right now.

The key points:

• 2.5% deposit required: First time buyers who qualify for the scheme are expected to be able to purchase an eligible new-build home with a 2.5% deposit.
• 20% equity loan: The government-backed loan is expected to cover 20% of the property’s value, with an initial interest-free period.
• England only: The scheme is being introduced for first time buyers in England.
• New-build homes: Properties will need to be new-builds purchased from participating developers.
• Income and price caps: Household income limits and local property price caps will apply, with the final thresholds to be confirmed.
• More details at the Budget: The government is expected to confirm the scheme’s costs and implementation timetable during the Autumn Budget 2026 on October 28^th.

What is the Your First Home scheme?

Your First Home is a proposed new government-backed equity loan scheme. It has been created to help eligible first time buyers in England get onto the property ladder with a much smaller deposit than a typical mortgage would require.

The scheme will allow buyers to purchase a new-build home from a developer signed up to the scheme.

Based on what’s been announced so far, the scheme is expected to work as follows:

• Buyers will need a deposit of just 2.5% of the property price.
• The government will then provide an equity loan worth 20% of the property’s value to top up your deposit.
• This means you could take out a smaller mortgage for the remaining amount, rather than saving for years to reach a bigger deposit amount.
• The loans will come with an initial interest-free period, so monthly costs could work out considerably cheaper.

What type of property could you buy?

Your First Home is intended for new-build properties (in England), rather than homes being sold on the existing market, so it may not necessarily suit every eligible buyer.

You will also need to buy from a developer signed up to the scheme.

The location, type and price of the home you are looking for, as well as your income and deposit, will all play a part in whether the scheme is available to or right for you.

Who can the First Home scheme help?

Your First Home has been designed specifically to help first time buyers who are struggling to afford to buy a home without additional financial support. The government has highlighted that budding buyers who do not have access to financial assistance from family, sometimes known as “the bank of mum and dad”, are a particular focus, although the specifics of eligibility are yet to be announced.

To keep support focused on those who need it most, the government has confirmed there will be:

• A household income cap.
• Local property price caps, which could vary by region.

The exact figures for both haven’t been published yet, but we’re expecting this information to be announced at the Autumn Budget 2026 on October 28^th.

When will Your First Home launch?

For anyone hoping to use the scheme, there is no application process currenty available, as Your First Home has not officially launched yet. We expect this information, along with the implementation timeline, to be announced during the Budget next month.

How does the First Home scheme compare to Help to Buy?

If this all sounds a little familiar, that’s because it echoes the popular Help to Buy: Equity Loan scheme, which closed to new applicants back in 2023. Help to Buy also offered government equity loans on new-build homes with an interest-free period, but it required a larger 5% deposit from buyers, compared with the 2.5% being proposed for Your First Home.

If the details are confirmed as expected, Your First Home could effectively lower the deposit bar even further than its predecessor, making it one of the most accessible low-deposit routes onto the ladder in recent years.

Of course, it’s also worth remembering this isn’t the only affordable homeownership buying option out there. Schemes like Shared Ownership, Deposit Unlock, First Homes, and Rent to Buy all offer different ways to reduce the cost of buying, so it’s worth weighing up which route suits you best once more detail on Your First Home emerges. Every scheme has its own eligibility criteria, costs and requirements; you can explore them on our buying schemes hub to find which ones match your circumstances.

What does this mean for first time buyers?

If you’re a first time buyer who’s been priced out of the market by the deposit gap, this is a scheme well worth keeping on your radar.

The biggest potential benefit of Your First Home is straightforward: A smaller deposit could make buying a new-build home possible for people who are currently finding the deposit barrier difficult to overcome. It could also make monthly repayments more manageable in those crucial first few years of homeownership.

It’s important to remember, though, that the deposit is only one part of buying a home. You will still need to meet a mortgage lender’s affordability criteria, cover the other costs involved in buying a property and be comfortable with the ongoing costs of owning your home. Speak to a specialist mortgage broker for tailored advice.

In the meantime, there’s plenty you can do to get yourself in the best possible position:

• Start saving now. Even a smaller deposit requirement is still a deposit — the sooner you start saving, the more choice you’ll have when the scheme launches.
• Check your credit score. Lenders will still assess affordability and creditworthiness alongside any government-backed loan.
• Explore what’s already available. If you’re looking to find your space sooner, or need a scheme that can help you move up or down the property ladder, schemes like Shared Ownership could be the right path for you.
• Keep an eye on the Autumn Budget. We’ll share more information about the new first time buyer scheme when the details are released, so you can get clued up.

Start your home journey today

Want to start exploring your options now? Browse the latest new-build and affordable homes on Share to Buy, or take a look at our full guide to home-buying schemes to see what could work for you today.

This article reflects the information available as of September 28th 2026. Full scheme details, including eligibility criteria and price caps, are expected to be confirmed at the Autumn Budget 2026.