Webbers Property Services has welcomed the Government’s announcement of Your First Home, a proposed new equity loan scheme designed to help more first-time buyers in England take their first step onto the property ladder.
What is the Your First Home scheme?
Your First Home is a proposed Government-backed equity loan scheme for first-time buyers purchasing eligible new-build homes in England.
Under the plans announced on 26 September 2026, qualifying buyers are expected to be able to purchase with a minimum 2.5% deposit, supported by a Government-backed equity loan of up to 20% of the property value.
Full eligibility rules, regional property price caps, financial terms and implementation dates are expected to be confirmed at the Budget.
For prospective buyers across Devon, Cornwall and Somerset, the announcement could be particularly significant for those who can comfortably manage mortgage payments but have found accumulating a substantial deposit to be one of the biggest obstacles to purchasing their first home.
Your First Home: key takeaways
- The scheme is intended specifically for first-time buyers in England.
- Eligible buyers are expected to need a minimum deposit of 2.5%.
- The proposed Government-backed equity loan will be worth up to 20% of the value of an eligible new-build property.
- The equity loan is expected to include an initial interest-free period.
- A household income cap and local property price caps are expected to apply.
- The property will need to be a qualifying new-build home from a developer participating in the scheme.
- Participating housebuilders are expected to contribute towards the cost of the scheme.
- Full eligibility criteria, costs and implementation dates are due to be announced at the Budget.
How will Your First Home work?
Your First Home is intended to reduce one of the most significant barriers facing first-time buyers: saving a sufficiently large deposit.
Under the plans announced so far, an eligible purchaser would provide a deposit equivalent to at least 2.5% of the purchase price, with the Government providing an equity loan of up to 20% of the value of an eligible new-build home.
The remaining purchase price would ordinarily need to be funded through an appropriate mortgage, subject to the buyer satisfying the lender’s own affordability, credit and eligibility requirements.
The Government has indicated that the equity loan will have an initial interest-free period. It says this could reduce monthly borrowing costs for some buyers compared with purchasing the same property using a traditional 95% mortgage.
The detailed financial terms have not yet been published, so buyers should not assume that the scheme will operate in exactly the same way as previous Government equity loan schemes.
Why could Your First Home help first-time buyers?
For many aspiring homeowners, the challenge is not necessarily being able to afford monthly mortgage repayments. The greater obstacle can be building the deposit needed before a purchase can take place.
Reducing the minimum deposit requirement to 2.5% could potentially shorten the amount of time some eligible buyers need to save before considering purchasing a qualifying new-build home.
Buyers will still need to satisfy mortgage affordability assessments and the final eligibility requirements of the Your First Home scheme.
They will also need to budget for the wider costs associated with purchasing and owning a home, which can include conveyancing fees, mortgage costs, surveys, insurance, moving expenses and ongoing household expenditure.
Independent mortgage and legal advice should therefore remain an important part of the home-buying process.
Will Your First Home apply to new-build homes?
Yes. Based on the Government announcement so far, Your First Home is intended to support eligible first-time buyers purchasing a new-build property from a developer participating in the scheme.
The Government has also said the scheme is intended to provide additional support to the new-build housing market and encourage further housing supply.
Developers participating in the scheme are expected to make a financial contribution towards its costs.
This could be particularly relevant across the South West, where new developments form an important part of the housing market in towns and communities including Barnstaple, Bideford, Bodmin, Launceston, Taunton and Wellington.
Webbers works closely with developers throughout the region through its specialist Land & New Homes department, marketing everything from individual new-build schemes to substantial new communities.
Malcolm Prescott welcomes the announcement
“I believe it is fair to say that many people seeking to get a foot on the property ladder will be very pleased and encouraged to hear this news.
“We all know that the property market moves better when first-time buyers are active and feeling more confident about buying their first home. Like many other agents across the country, we welcome this positive news.”
Malcolm added that enabling more first-time buyers to purchase can have implications beyond the new-build sector.
First-time buyers frequently provide the starting point for property chains. When more buyers are able to enter the market, this can allow existing homeowners to move onwards and potentially create additional activity throughout different parts of the housing market.
Could Your First Home be available in Devon, Cornwall and Somerset?
The scheme is proposed for England, meaning eligible developments in Devon, Cornwall and Somerset could potentially participate.
However, the Government has confirmed that local property price caps will form part of the scheme.
Exactly how those regional limits will operate has not yet been published, meaning eligibility could vary according to both the location and value of the property being purchased.
For buyers looking at new-build homes in areas such as North Devon, North Cornwall, West Somerset, Taunton, Bideford and Launceston, the eventual regional property price limits could therefore be an important part of determining whether a particular home qualifies.
Webbers will continue to monitor the scheme and provide further information once the Government publishes its detailed eligibility criteria.
What details about Your First Home are still to be confirmed?
Although the Government has announced the broad structure of Your First Home, a number of important details remain outstanding.
- The household income threshold.
- The precise local property price caps that will apply in different parts of England.
- The length and detailed conditions of the initial interest-free period.
- Any fees, interest or other costs that could apply after the interest-free period.
- The detailed repayment terms for the equity loan.
- Which developers will participate in the scheme.
- Which individual developments and properties will qualify.
- The full eligibility requirements for buyers.
- The date applications will formally open.
The Government has said further information, including costs and implementation timelines, will be announced by the Chancellor at the Budget.
Your First Home FAQs
Who will be eligible for Your First Home?
The scheme is intended for first-time buyers purchasing eligible new-build homes in England. The Government has said a household income limit and local property price caps will also apply, but the detailed thresholds have not yet been published.
How much deposit will I need for Your First Home?
The Government announcement says the scheme is expected to support deposits of 2.5% for eligible first-time buyers. Full terms will be confirmed when the detailed scheme rules are published.
How much will the Government contribute?
The proposed Government-backed equity loan is expected to provide up to 20% of the value of an eligible new-build property.
Will the equity loan be interest-free?
The Government has said the equity loan will include an initial interest-free period. The length of that period and the costs that could apply afterwards have not yet been confirmed.
Can I use Your First Home in Devon, Cornwall or Somerset?
Potentially. The scheme is intended to operate in England, but qualifying properties will be subject to local property price caps and other eligibility requirements which are still to be announced.
Does Your First Home apply to existing homes?
Based on the Government announcement, the scheme is intended for qualifying new-build homes purchased from participating developers.
When will the Your First Home scheme start?
A formal start date has not yet been announced. The Government has said implementation timelines and further details will be provided at the Budget.
Source: UK Government announcement, “New first-time buyer scheme to be confirmed at Budget”, published 26 September 2026. Read the Government announcement .
Looking for your first home?
Webbers markets a wide selection of new homes throughout Devon, Cornwall and Somerset. Speak to our local teams about current developments, availability and the options that could be suitable for your move.