Andy Burnham Unveils "Your First Home" Scheme to Help First-Time Buyers Onto the Property Ladder

2026-09-28

Industry News

Prime Minister Andy Burnham has announced a new government-backed mortgage scheme aimed at first-time buyers who don't have access to the "bank of mum and dad." Called "Your First Home," the initiative was revealed on the eve of Labour's party conference in Liverpool and marks one of the government's biggest housing interventions since taking office.

What Is the "Your First Home" Scheme?

The Your First Home scheme is designed to let people buy a new-build property in England with a deposit of just 2.5%, well below the 5-10% typically required by mortgage lenders. Alongside that small deposit, buyers would receive an interest-free government equity loan covering 20% of the property's value, similar in structure to the previous Help to Buy scheme that ran until 2023.

Key features announced so far include:

• 2.5% minimum deposit for eligible first-time buyers
• 20% government equity loan on new-build homes
• Initial interest-free period on the loan
• Funding drawn from reprioritised existing government budgets
• Housing developers expected to contribute towards the scheme's running costs

Full details — including any property price caps, income thresholds, and repayment terms — are expected to be confirmed by Chancellor Rachel Reeves' successor, John Healey, in the Budget on 28 October.

Why Has Burnham Announced This Now?

Burnham said the scheme is meant to help people who lack support from the "bank of mum and dad" get onto the housing ladder. He argued that too many young people are struggling with housing costs and losing hope of ever owning a home, and framed the policy as a direct response to that affordability crisis. AOL

The announcement lands just as Burnham prepares for his first Labour Party conference as prime minister, and comes packaged with a second policy: a faster route into guaranteed jobs for young people on health or disability benefits, cutting the wait from 18 months to three.

Housing Secretary Angela Rayner has also linked the scheme to lessons learned from earlier interventions, saying it aims to build on what worked previously while addressing past shortcomings.

How Does It Compare to Help to Buy?

The scheme closely echoes Help to Buy, the flagship Conservative-era programme that ran from 2013 until 2023:

• Help to Buy originally required a 5% deposit with a 20% equity loan (up to 40% in London), interest-free for five years, on homes worth up to £600,000.
• An independent evaluation found the scheme supported more than 387,000 property purchases, with around 328,000 of those by first-time buyers, and gave a boost to housing supply beyond the properties directly funded.
• Critics said Help to Buy also inflated new-build prices, with developers absorbing much of the stimulus through higher asking prices.

Your First Home appears to lower the deposit bar even further — to 2.5% — while shifting some of the running costs onto housebuilders rather than the taxpayer alone.

Criticism From the Conservatives

The Conservative Party has been sharply critical of the plan. Shadow minister Katie Lam accused Labour of asking first-time buyers to take on more debt for a limited supply of homes, and said taxpayers would end up with a stake in buyers' properties — she also warned the levy on developers could push up prices further. NewsCord

The Conservatives have instead called for scrapping stamp duty and giving more direct support to British housebuilders, rather than subsidising buyer deposits.

The Bigger Housing Picture

The announcement comes against a difficult backdrop for Labour's housing agenda:

• The government has previously admitted there's only a "slim chance" of hitting its target of building 1.5 million homes in England before the next election.
• BBC Verify analysis has shown a decline in new home completions during Labour's first year in power, continuing a downward trend that began under the previous government.
• Ministers have also unveiled separate plans to make it easier for councils to bring empty homes back into use for people in housing need.

What Happens Next?

The scheme isn't fully live yet. The government has confirmed that the finer details — including eligibility criteria, whether there will be regional price caps, and exact repayment rules for the equity loan — will be set out by the Chancellor in the Budget on 28 October 2026. Until then, prospective first-time buyers won't be able to apply.