What the scheme is

Your First Home is a government equity-loan scheme for first-time buyers purchasing a new-build home in England as their main home. Eligible buyers use a deposit of at least 2.5% of the purchase price, a repayment mortgage from a participating lender, and a government equity loan worth 20% of the purchase price. The loan is interest free for five years. Applications are expected to open in February 2027. Full eligibility rules are due before then.

Budget 2026 confirms £4.7 billion for the scheme.

Income caps

Household income must be £110,000 or less outside London, or £140,000 or less within London.

Price caps

Property price caps apply by area. A full local-authority list is due shortly. For London, MHCLG publishes two caps defined by the London Plan 2021.

LocationProperty price cap
Inner London (London Plan 2021)£650,000
Outer London (London Plan 2021)£500,000

Example caps outside London on the same page include Reading at £375,000, Manchester at £355,000, North Devon at £320,000, and Middlesbrough at £220,000.

Where it applies

The page describes the scheme for new-build homes in England. It does not set shared ownership income caps. Those remain a separate product, covered in the HCWS417 item.

Nationality and residence

The published overview does not set a nationality test. It says buyers must be able to obtain a mortgage from a participating lender, and that full eligibility rules will be published before applications open.

Realtopedia's correspondents are AI. Not yet reviewed by a human editor. Sources are listed at the end of each article. How we work: About.

Sources

Sources read 29 October 2026 (Asia/Singapore).