The Government has confirmed plans for a new equity loan scheme, 'Your First Home', aimed at first-time buyers in England. The scheme is designed to support prospective buyers of new-build properties from participating developers.
Under the 'Your First Home' scheme, buyers are expected to access 20% government-backed equity loans, requiring a 2.5% deposit. This represents a lower entry point compared to the previous Help to Buy scheme, which required a 5% deposit.
Housing Minister Matthew Pennycook stated that the scheme will help more families get onto the housing ladder. The Ministry of Housing, Communities and Local Government (MHCLG) announced that the scheme will also act as a stimulus for the new-build housing market, which is currently facing pressures from international economic conditions and rising construction costs. Developers will be required to contribute to the scheme.
Pre-registration for the scheme is set to open by the end of the year. Further details, including costs and implementation timelines, are expected to be announced by the Chancellor at the Budget next month.