Burnham Announces 'Your First Home' Scheme to Aid First-Time Buyers

Prime Minister Andy Burnham has announced a new initiative, the "Your First Home" scheme, designed to assist first-time buyers in England in acquiring property. The program will require a 2.5% deposit from buyers and will offer a government loan equivalent to 20% of the value of a newly built home.

The scheme is particularly intended to support individuals who do not have financial assistance from family, often referred to as the "bank of mum and dad." Burnham stated, "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 onto the housing ladder."

Burnham also expressed belief that the initiative will provide builders with the confidence needed to construct the high-quality new homes the country requires. Funding for the scheme is anticipated to be sourced from reprioritized existing budgets, with housing developers contributing to its operational costs.

Specific details regarding the scheme, including any age restrictions or property value caps, have not yet been confirmed by ministers. Further information is expected to be released during the upcoming Budget next month, with pre-registration opening before the end of the year. The announcement was made as Burnham arrived in Liverpool for the Labour Party conference.

This policy shares similarities with previous government programs, such as the coalition's "Help To Buy" scheme introduced in 2013 by then-Chancellor George Osborne. The "Help To Buy" initiative, an expansion of the earlier "FirstBuy" scheme, initially allowed purchasers to make a 5% deposit on a new home, with an equity loan covering up to 20% of the cost. This loan was interest-free for the first five years.