Understanding Burnham’s “Your First Home” Scheme

Prime Minister Andy Burnham has unveiled a high-profile initiative designed to aid first-time buyers across England. It’s been named the Your First Home scheme and targets buyers who lack access to financial support from family—the so-called "bank of Mum and Dad"—by significantly lowering the initial barrier to homeownership.

At the heart of the scheme is a 2.5% minimum deposit requirement, half the 5% threshold required by previous initiatives like Help to Buy. To make up the shortfall, the government will provide a 20% equity loan on eligible new-build properties, which will feature an initial interest-free period to keep monthly commitments manageable. Buyers can then secure a standard mortgage for the remaining 77.5% of the property's value. By lowering the LTV (loan-to-value) below 80%, the arrangement allows buyers to access more competitive interest rates than typical high-loan-to-value products. For instance, at the average UK house price of £272,611, a buyer would need a deposit of £6,815 (2.5%) under the scheme, alongside a £54,522 (20%) equity loan and a £211,274 mortgage. 

To ensure support reaches lower- and middle-income households, the Government will implement household income caps alongside regional property price limits. This means you can only use this scheme if your salary is below a certain limit and the house you are buying is below a price limit suited to your local region. The aim is to stop wealthy individuals or high-earning households from taking advantage of government assistance intended for those in need.  It ensures the Scheme is exclusive to average earners seeking to buy modest homes. Furthermore, commercial housebuilders, such as Persimmon, Taylor Wimpey, or Barratt, will be required to contribute toward the operational costs of the initiative, thereby shielding taxpayers from bearing the full administrative load.

Industry reactions have been cautiously optimistic. The deposit remains the single  biggest barrier for those looking to get on the property ladder. So lowering this amount will help those who can afford the monthly repayments but are struggling to save whilst paying rent. However other industry experts caution that limiting the scheme to new builds could inflate prices or lock buyers into long-term equity debt. Others have called for more stamp duty support in London and the South East, where many new-build homes sit above the £300,000 first-time buyer threshold.

Full details of the scheme, including exact price caps, eligibility rules, and repayment timelines are set to be outlined in the Autumn Budget on 28 October 2026.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

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Approved by The Openwork Partnership on 20/10/2026