The new Your First Home (YFH) programme for first-time buyers has the potential to increase the number of houses British builder Bellway produces each year by 10%, according to its chief executive, Jason Honeyman. The scheme, announced by Andy Burnham a fortnight ago, is designed to be more targeted than previous help-to-buy initiatives, featuring household income and price caps.
YFH applies only to England and is aimed at prospective first-time buyers looking to purchase a new-build flat or house. It will offer a government-backed equity loan worth 20% of the purchase price, with buyers needing a minimum deposit of 2.5%.
While the scheme could provide significant support for first-time buyers, Honeyman noted it might temporarily slow the market as some buyers may wait for its launch. However, he added that it could help drive Bellway's annual completions back to 10,000 homes from next September at the earliest.
Full details of the YFH programme, including its launch date, are anticipated to be announced by Chancellor John Healey in his first budget on 28 October. Bellway's comments followed the company reporting revenue of £3.16bn for the year to 31 August, a 13% increase from the previous year, with underlying profits before tax rising 5.7% to £305.7m.