Burnham Announces ‘Your First Home’ Scheme with 2.5% Deposit Option

Prime Minister Andy Burnham has announced a new “Your First Home” scheme aimed at helping first-time buyers in England purchase new build properties with a 2.5% deposit. The scheme will provide a government-backed equity loan covering 20% of the property’s value, initially interest-free. Burnham stated the initiative is designed to assist those unable to rely on family financial support, often referred to as the “bank of mum and dad,” and to encourage construction of new homes.

The scheme will be funded by reprioritising existing government budgets, with housing developers also contributing to running costs. With the average UK starter home costing £230,000, buyers could provide a £5,750 deposit and access up to £46,000 in loan support. Full details will be presented by Chancellor John Healey in the Budget on October 28, with pre-registration opening before the end of the year.

Housing Secretary Angela Rayner said the scheme would “build on the lessons learned from previous schemes,” referencing initiatives like the 2013 Help to Buy scheme introduced by George Osborne. Data indicates a decline in new house construction during Labour’s first year in power, continuing a trend from the previous Conservative government. Rayner acknowledged the government is currently behind schedule on its target of building 1.5 million homes in England by the next election, but remains committed to the goal. Ministers have not yet confirmed whether there will be an age restriction or a cap on property value for the scheme. The announcement was made as Burnham arrived in Liverpool for the Labour Party conference.

Where they differ

• The Independent highlighted the average UK starter home cost of £230,000 and the corresponding deposit and loan amounts, providing a concrete financial example.
• Sky News presented the scheme as specifically for those who cannot rely on the 'bank of mum and dad', framing it as a solution to that particular barrier.
• BBC focused on Burnham’s belief that the scheme will boost builder confidence and address the housing shortage.

What is not yet known

• Whether there will be an age restriction on the scheme.
• Whether there will be a cap on the value of properties eligible for the scheme.

Background

• Andy Burnham is the current Prime Minister, leading the Labour party [Fact Refinery, 2026-09-25].
• The 2013 Help to Buy scheme was a previous government initiative aimed at assisting first-time homebuyers [Fact Refinery, 2026-09-24].
• The average UK starter home currently costs approximately £230,000 [Fact Refinery, 2026-09-24].
• The UK government borrowed £18.3 billion in August, exceeding forecasts due to rising inflation and debt interest payments [Fact Refinery, 2026-09-22].

Our reading

Our reading is that the government is attempting to address a persistent housing affordability issue by reducing the upfront financial barrier to homeownership. The scheme’s focus on those unable to rely on family support suggests a recognition of existing inequalities in access to housing. Framing the initiative as a means of boosting builder confidence indicates an intention to stimulate supply alongside demand, though the success of this is not guaranteed.

What to watch

• The full details of the scheme, including any age restrictions or property value caps, when presented by Chancellor John Healey in the Budget on October 28 [Fact Refinery, 2026-09-25].
• The number of pre-registrations received for the scheme before the end of the year, which will indicate initial public interest [Fact Refinery, 2026-09-25].
• Whether the government meets its target of building 1.5 million homes in England by the next election, given its current behind-schedule status [Fact Refinery, 2026-09-24].

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