New research from property portal Rightmove suggests the proposed 'Your First Home' scheme could significantly expand housing options for single first-time buyers. The scheme is estimated to more than double the number of new-build properties within their financial reach, potentially increasing affordable new-build homes in England by 114% for an average solo buyer.
Under the proposed structure, buyers would provide a 2.5% deposit, supported by a 20% government-backed equity loan, with a mortgage covering the remaining 77.5%. This could increase an average single buyer's maximum purchasing power by almost £49,000, from £216,758 to £265,703, while reducing the required cash deposit from £10,838 to £6,643.
The North West could see the highest proportion of affordable new-build homes under the scheme, with 31% of currently available properties potentially becoming affordable for an average solo first-time buyer, up from 20% under conventional mortgages. Other regions like Yorkshire and the Humber, the North East, and the East Midlands could also see substantial improvements in affordability.
However, affordability challenges are expected to persist in southern England. In London, only 5% of available new-build homes might fall within an average solo buyer’s purchasing power, an increase from 1% currently. The South East could rise from 4% to 9%, and the South West from 3% to 7%.
At a local level, Kingston upon Hull could offer the widest choice, with 75% of new-build homes potentially affordable, followed by Liverpool at 72%. Rightmove's director of new homes, Alex Slater, noted that the final details, including any income and property price caps, will be crucial in determining the scheme's full impact.