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Prime Minister Andy Burnham is set to launch a new initiative aimed at supporting young first-time buyers in England to enter the property market. The proposed “Your First Home” scheme will require purchasers to have just a 2.5% deposit while providing an equity loan equal to 20% of the value of a newly built home to assist with purchasing costs.
Burnham emphasized that this program targets those young people who often lack financial help from family—sometimes referred to as the “bank of mum and dad.” Initially, borrowers would benefit from an interest-free period on the equity loan, with further specifics expected to be detailed in the upcoming Budget. However, some opposition voices argue that this plan risks saddling buyers with increased debt and may inadvertently drive up new housing prices.
The Prime Minister expressed his commitment to tackling the housing affordability crisis, stating, “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own. So we will step in to help more first-time buyers on to the housing ladder.” He also indicated that the scheme could encourage construction companies to innovate and provide the new homes needed across the country. The financing of the initiative is expected to be managed through reallocating existing funds, supplemented by contributions from housebuilders. At this stage, officials have not confirmed whether the scheme will enforce age limits or cap property values.
This new policy mirrors previous government efforts such as the “Help To Buy” scheme, originally introduced in 2013 under then-Chancellor George Osborne. Help To Buy expanded on an earlier program called FirstBuy, aimed specifically at first-time buyers, by allowing all buyers to make a minimum 5% deposit on newly built homes costing up to £600,000. Alongside, it offered a shared equity loan of up to 20% of the home’s value, interest-free for the initial five years. The first version of Help To Buy ran until 2021, followed by a revised scheme until 2023 that focused exclusively on first-time buyers and implemented regional price caps. An evaluation of the scheme found that over 387,000 homes were purchased through it, with 328,000 bought by first-time purchasers. The report concluded that while the scheme supported homeownership in some areas, it struggled to ease affordability challenges in more expensive regions.
Housing Secretary Angela Rayner described “Your First Home” as an improvement that “builds on the lessons learned from previous schemes, while retaining the benefits.” The Home Builders Federation welcomed the initiative, stating that it had “long called for action to improve access to home ownership” and emphasized that a thoughtfully designed scheme can meaningfully assist households striving to buy their first home. On the other hand, Conservative shadow housing secretary Katie Lam criticized the plan, accusing Labour of encouraging first-time buyers to accumulate more debt to afford homes, while taxpayers would “take a stake in their homes” and face financial burdens. Lam also warned that levies on developers might increase prices for new houses, calling the policy a “colossal admission of failure.” She outlined the Conservative approach as focused on scrapping stamp duty, supporting British builders, and ensuring homes are constructed where demand exists.
Earlier this month, Rayner acknowledged on the BBC that the government faced only a “slim chance” of hitting its target to build 1.5 million homes in England by the next election but insisted she was continuing to push for progress. Data up to June showed the construction pace remains below what is needed, a concern echoed by housebuilders who have regarded the goal as overly ambitious. Additionally, BBC analysis revealed a decline in new housing completions during Labour’s first year in office, continuing a downward trend that began under the Conservatives.
The announcement of this housing policy coincided with Burnham’s arrival in Liverpool ahead of his first Labour Party conference as Prime Minister. He described the conference as a pivotal moment for the country, remarking, “We’ve had a decade since Brexit and it’s been a decade of too much drift, too much division, and we need to draw a line on that.” Alongside the housing plan, he revealed a new commitment to help young people with disabilities access jobs more quickly by providing a guaranteed offer of employment three months after they begin claiming benefits. Starting next April, the government would cover 100% of wages for up to 25 hours per week for six months.
This marks a reduction in waiting times compared to the current government’s job guarantee scheme, which requires young unemployed individuals aged 18 to 24 to have been on universal credit for 18 months before an offer is made. In response, Conservative shadow work and pensions secretary Helen Whately criticized the proposal, stating that Labour should focus on reducing burdens on employers to boost employment among disabled people. She added, “Instead, they are bringing back a Conservative post-pandemic scheme. Andy Burnham clearly has no new ideas,” and questioned the source of funding for the program
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