Burnham announces proposed first-time buyer loan scheme

Andy Burnham has announced Your First Home, a proposed equity-loan scheme intended to help eligible first-time buyers in England purchase a home with a minimum deposit of 2.5% and a government loan worth 20% of the property’s value. The loan would initially be interest-free, but the scheme’s detailed rules and funding allocation have yet to be published. The government says the programme is aimed at buyers with regular incomes who have struggled to save a large deposit or lack financial help from family. A £230,000 average first-home price, attributed to Rightmove in the reports, illustrates how the proposal could work: a buyer would put down £5,750 and could receive a loan of up to £46,000. These are illustrative figures, not a confirmed purchase limit or an individual buyer’s entitlement. Income, deposit and property-price caps are expected to restrict who can participate and what homes they can buy. The full terms and specific caps are due to be set out at the Budget on October 28. Reports differ on whether the scheme will apply only to new-build properties; the eligibility rules have not resolved that question.