UK unveils 'Your First Home' equity loan scheme for buyers
The scheme, announced on Saturday, is due to be confirmed at the Budget on 28 October 2026
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The UK government announced a new equity loan scheme called 'Your First Home' on Saturday, according to GOV.UK. The scheme is intended to help first-time buyers in England and is set to be confirmed at the Budget on 28 October 2026, according to Estate Agent Today.
Under the plan, buyers could put down a deposit of 2.5%, backed by a government equity loan covering 20% of the property's value, according to GOV.UK. The loan would apply to new-build homes bought from developers signed up to the scheme. GOV.UK said an initial interest-free period on the loan could save buyers hundreds of pounds a month compared with a 95% mortgage.
The announcement follows a run of UK government interventions focused on industrial matters, including steel sector takeovers and port disruptions. A scheme aimed at housing demand marks a shift toward consumer-facing measures, and could ease mortgage accessibility for first-time buyers if confirmed at the Budget. Easier access to deposits could also lift order flows for home builders and sharpen earnings visibility for the sector in the run-up to the Budget.