Your First Home scheme introduced to support UK buyers

The UK government has introduced the ‘Your First Home’ scheme, a program designed to assist first-time buyers who lack financial support from family. The initiative allows eligible buyers to purchase a home with a deposit of just 2.5 per cent, supported by a government-backed equity loan covering up to 20 per cent of the property value.

Industry experts and developers have offered mixed reactions to the announcement. Tim Sargeant, chairman of City and Country, welcomed the intervention, stating it could boost market confidence and support the delivery of much-needed new homes. He noted that a healthy housing market supports broader economic investment and jobs.

However, some professionals warned of potential side effects. Heather Powell of Blick Rothenberg cautioned that if developers are required to contribute to the scheme, the additional costs could fuel house price inflation. Other experts, including representatives from Boyer and Goodman Jones, noted that while the scheme addresses demand, it does not resolve supply-side challenges such as rising construction costs, financing difficulties, and planning delays.