Government to confirm Your First Home equity loan scheme for new-build buyers at Budget

The government has said a new equity loan scheme for first-time buyers in England, called Your First Home, will be confirmed at next month's Budget.

In an announcement on Saturday 26 September 2026, the Ministry of Housing, Communities and Local Government (MHCLG) said the scheme is expected to support 2.5% deposits, backed by 20% government-backed equity loans. It would apply to first-time buyers purchasing a new-build home from a developer that has signed up to the scheme.

The loans will carry an initial interest-free period. MHCLG said people using the scheme could save hundreds of pounds a month compared with a 95% mortgage.

What housebuilders need to know

Three points in the MHCLG announcement bear directly on developers.

First, developers will be expected to make a contribution when signing up, to help cover costs. The size of that contribution has not been set out.

Second, the scheme will have a household income cap and local property price caps, intended to target support at those who need it. MHCLG said the detail will follow at the Budget.

Third, costs and implementation timelines have not yet been published. MHCLG said these will be announced by the Chancellor at the Budget. The Home Builders Federation (HBF) told members in a briefing that full details will be set out at the Budget on 28 October.

The government acknowledged that the new-build market faces headwinds from international economic pressures and rising construction costs, and said the scheme is also intended as a stimulus to support the market and boost housing supply.

Industry response

HBF welcomed the announcement. Neil Jefferson, Chief Executive of the Home Builders Federation, said: "We have been calling for action to improve access to home ownership, and a well-designed scheme has the potential to make a real difference to households who are struggling to get onto the housing ladder."

He added: "It is important now that the Government moves quickly to implement the scheme."

Jefferson also said the scheme needs to work for buyers in different parts of the country and for housebuilders of all sizes.

The outline closely matches what the federation had asked for. HBF's Autumn Budget representation called for a new 20% equity loan scheme for first-time buyers, supported by a developer contribution. HBF said it had developed its own proposal for a scheme and shared it with ministers and officials across government departments.

In its member briefing, HBF said it will now engage with government so that the scheme criteria allow for the necessary targeting without restricting its effectiveness in boosting supply and supporting first-time buyers.

The Help to Buy evidence

MHCLG has also published an independent evaluation, which it commissioned, of the Help to Buy equity loan scheme in England between 2013 and 2023. GOV.UK lists it as published on 15 September 2026. HBF's Budget representation had asked for the evaluation to be published.

The evaluation's econometric analysis suggests that around 15% of new builds in England over the two phases of the scheme, from 2013 to 2023, were the result of Help to Buy. It also found that 46% of Help to Buy customers in England said they could not have bought without it.

What happens next

The Budget is the next milestone. Until then, the size of the developer contribution, the level of the income and price caps, and the costs and implementation timelines remain to be set out.

HBF said it will continue to engage with government on the design and will share further information with members in due course.