New “Your First Home” scheme to help Portsmouth first-time buyers onto the housing ladder
Labour Government to offer first-time buyers with a 2.5% deposit a new route into home ownership
The Labour Government is taking action to help more people achieve the dream of owning their own home, with a new “Your First Home” equity loan scheme for first-time buyers.
The scheme will help people who can afford mortgage payments but are struggling to save a large deposit — particularly those without financial support from the so-called “Bank of Mum and Dad”.
Under the new scheme:
- First-time buyers will be able to purchase a new-build home with a deposit of just 2.5%.
- The Government will provide a 20% equity loan, reducing the amount buyers need to borrow through a mortgage.
- The equity loan will be interest-free for an initial period, helping to keep housing costs affordable.
- Income and property price caps will target support towards people who need it most and ensure the scheme is focused on modest homes.
- A 15% deposit cap will prevent the scheme from being used by those with substantial savings.
- Developers participating in the scheme will pay a fee linked to property values, contributing towards its running costs.
- The scheme will be funded by reprioritising existing Government budgets, rather than increasing borrowing.
- Pre-registration will open by the end of 2026, with further details to be announced by the Chancellor at the Budget.
The scheme will also support the construction of new homes by giving developers greater confidence that there will be buyers for the properties they build.
Amanda Martin MP, Member of Parliament for Portsmouth North, said: “For too many people in Portsmouth, the dream of owning their own home can feel increasingly out of reach. High housing costs and the challenge of saving a large deposit can make getting onto the property ladder incredibly difficult, particularly for people who do not have family members able to help them financially.
“That is why I welcome this new support for first-time buyers. A 2.5% deposit could make a real difference to people in Portsmouth who are working hard, paying their rent and able to afford a mortgage, but have struggled to build up a large deposit.
“We also need to make sure that Portsmouth has the homes people need, which means building good-quality new homes in the right places. This scheme, alongside the Government’s wider housebuilding and planning reforms, can help give people more opportunities to put down roots in our city.
“For people who have spent years wondering whether they will ever be able to own their own home, this is about giving them a realistic route onto the housing ladder.”
Prime Minister Andy Burnham said: “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.
“Your First Home will help more first-time buyers onto the housing ladder, especially those who cannot rely on the Bank of Mum and Dad.
“We want to give people the opportunity to get the keys to their own front door while giving builders the confidence to deliver the high-quality new homes our country needs.”
Angela Rayner, Secretary of State for Housing, Communities and Local Government, said: “Too many people have been priced out of home ownership and have given up hope of ever having a home of their own.
“Your First Home will make that first step onto the property ladder more achievable for people who can afford a mortgage but have struggled to save a large deposit.
“This is a targeted approach, focused on first-time buyers who need support most and who do not have the benefit of a large deposit from the Bank of Mum and Dad.
“We are learning the lessons from previous schemes while making sure support is targeted, developers contribute and taxpayers get value for money.”
Housing is a major issue for people across Portsmouth. Amanda Martin has previously highlighted housing as a key concern raised by constituents, including the challenges facing people trying to get onto the property ladder and the wider need to increase housing supply.
Your First Home is designed to address one of the biggest barriers facing prospective first-time buyers: saving a sufficiently large deposit.
By allowing eligible buyers to access support with a deposit of just 2.5%, the scheme will provide a new route into home ownership for people who may otherwise remain in the private rented sector.
The scheme will be targeted through household income limits, property price caps and a maximum deposit requirement, ensuring Government support is focused on those facing genuine barriers to home ownership.
It will apply only to new-build homes, helping to support the delivery of new housing alongside wider Government action to increase housebuilding. Developers participating in Your First Home will contribute to the running costs of the scheme through a fee linked to property values.
This will ensure the industry shares in the cost of the support while providing greater certainty that new homes will have prospective buyers.
Further details, including the precise costs, eligibility criteria and implementation timetable, will be announced by the Chancellor at the Budget. Your First Home forms part of the Government’s wider package of measures to support first-time buyers, including the introduction of a new permanent Mortgage Guarantee Scheme.
The Government is also pursuing wider planning and housebuilding reforms and has committed to a major expansion of council housebuilding.
For Portsmouth, where housing supply and access to home ownership are significant local concerns, the combination of helping prospective buyers and increasing the supply of new homes will be particularly important.
Pre-registration for Your First Home will open by the end of 2026. Further details will be announced at the Budget.
