Prime Minister Andy Burnham is introducing a new initiative aimed at helping young people step onto the property ladder.
The “Your First Home” initiative will be available to first-time buyers in England who have a 2.5% deposit. It will offer an equity loan covering up to 20% of the value of a newly built property to assist with the purchase.
Burnham noted that the scheme specifically targets individuals who lack financial support from the “bank of mum and dad.”
Labour stated that the equity loan would feature an initial interest-free period. Additional details are anticipated in the upcoming Budget, with pre-registration set to open before the year concludes.
Burnham stated, “Too many young people are struggling with the cost of housing, with many abandoning hope of ever owning a home. We will therefore intervene to help more first-time buyers climb the housing ladder.”
The Prime Minister added that he believes the initiative will provide developers with the “confidence to deliver the high-quality new homes the country needs.”
Funding is expected to be sourced from reprioritized existing budgets, though housing developers will contribute to the operational costs.
Ministers have yet to confirm whether the scheme will impose an age restriction or a cap on property values.
The announcement came as Burnham arrived in Liverpool ahead of his first Labour Party conference since assuming office.
This policy mirrors previous government initiatives, such as the Help to Buy scheme introduced in 2013 by then-Chancellor George Osborne, which itself expanded upon the FirstBuy scheme—a program aimed exclusively at first-time buyers. Under Help to Buy, all purchasers could put down a 5% deposit on a newly built home, with up to 20% of the property cost funded by a shared equity loan that remained interest-free for the first five years.
Housing Secretary Angela Rayner stated that “Your First Home” would “build on the lessons learned from previous schemes, while retaining the benefits.” “We are delivering a new generation of equity loans in a Labour way, specifically targeting support for first-time buyers who need it most,” she said.
Earlier this month, Rayner told the BBC that there was only a “slim chance” the government would meet its target of building 1.5 million homes in England by the next election, though she stated she was “not giving it up.”
Data through June of this year indicated that the government was falling behind on the construction rate needed to meet this goal, a target that housebuilders have previously warned was overly optimistic.
BBC Verify analysis revealed a decline in new home construction during Labour’s first year in power, continuing a downward trend that originated under the Conservative government.
