House price growth has weakened, but a new Government-backed scheme could lower the deposit barrier for some first-time buyers in England.

Britain's revived equity loan lets first-time buyers purchase a new build with a 2.5% deposit. The first winners were housebuilder shareholders, and the fine print on prices and repayments is still mi

Prime Minister Andy Burnham has announced a new 'Your First Home' help-to-buy scheme aimed at first-time buyers who cannot rely on financial support from their parents. The initiative, set to be formally presented by Chancellor John Healey during the Budget on 28 October, allows buyers to secure a property with a 2.5 per cent deposit and an interest-free government equity loan covering 20 per cent of the property's value. Funding for the housing initiative will be sourced from reprioritised existing government budgets, with housing developers expected to cover running costs to boost industry confidence in constructing new homes. The scheme addresses concerns about the high number of young people who have given up on home ownership, as highlighted by the prime minister. In a separate announcement, Labour revealed plans to cut the welfare bill by offering young people receiving health or disability benefits a guaranteed job three months after claiming, reduced from 18 months. This move aims to streamline welfare support and encourage employment among younger beneficiaries. The 'Your First Home' scheme is part of Labour's broader strategy to address housing affordability and support economic growth through increased home ownership. The government has emphasized that the initiative will not require additional public spending, as it will be funded through reallocation of existing budgets. This approach is intended to reassure stakeholders about fiscal responsibility while delivering tangible support to first-time buyers. The announcement comes ahead of Labour's annual conference, underscoring the party's commitment to housing reform as a key policy priority. The scheme's details, including eligibility criteria and application processes, will be outlined in the upcoming Budget presentation. The government has also indicated that the initiative will be rolled out in phases, with initial focus on regions experiencing the highest housing demand. This targeted approach aims to maximize the impact of the scheme on areas most affected by housing shortages. The Chancellor's Budget speech on 28 October will provide further clarity on the implementation timeline and potential adjustments to the scheme based on market feedback. Overall, the 'Your First Home' initiative represents a significant step in Labour's efforts to make home ownership more accessible for young people, addressing a critical issue in the current economic climate. The government's emphasis on fiscal prudence, through the use of existing budgets, reflects a strategic approach to policy-making that balances social support with economic responsibility.

Andy Burnham has announced a new housing scheme intended to help first-time buyers who have limited access to financial support from family members. Called Your First Home, the scheme is designed to assist people who are struggling to save a conventional deposit while facing high housing costs. Under the proposed scheme, eligible first-time buyers would be able to purchase a property after saving a deposit equivalent to 2.5% of its value. They would then have access to an equity loan worth up to 20% of the property's value. The loan would initially be interest-free, with the stated aim of keeping housing costs affordable for participating buyers. Sky News gives the example of a property costing £230,000, described as the national average price for a starter home according to Rightmove. A buyer purchasing such a property would need to save £5,750 for a 2.5% deposit and could potentially receive an equity loan of up to £46,000. The scheme is intended to focus support on people who cannot rely on financial assistance from their parents or other family members. Funding is expected to come from reprioritised existing government budgets, while housing developers will also contribute towards the scheme's running costs. Ministers say the developer contribution is intended to provide greater confidence for the construction of new homes. Burnham announced the initiative ahead of the Labour Party conference in Liverpool. He said the scheme would help more first-time buyers purchase homes and encourage developers to build new properties. Housing Secretary Angela Rayner also said the policy was intended to make home ownership more accessible to people who had been priced out of the market. The scheme therefore combines assistance with deposits and equity financing with an objective of increasing access to newly built homes.

Prime Minister Andy Burnham has announced a new housing initiative called 'Your First Home' designed to assist first-time buyers in England. The scheme will allow eligible buyers with a 2.5% deposit to access a 20% equity loan on new build properties, with an initial interest-free period. The policy aims to support young people without family financial backing, addressing the growing housing affordability crisis. Burnham stated that '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.' The government plans to fund the scheme by reprioritising existing budgets, while housing developers will contribute to running costs. The policy draws parallels to the previous 'Help to Buy' scheme introduced in 2013, which enabled 387,000 properties to be purchased, including 328,000 by first-time buyers. However, an evaluation noted that while effective in some areas, it did not resolve affordability barriers in expensive regions. Housing Secretary Angela Rayner stated the new scheme would 'build on the lessons learned from previous schemes, while retaining the benefits.' The Conservatives have criticised the policy, warning it would increase debt for buyers and potentially raise new home prices. Shadow Housing Secretary Katie Lam accused Labour of making homes 'harder to build' while asking buyers to 'borrow more to pay for them.' The announcement coincided with Burnham's arrival in Liverpool ahead of the Labour Party conference, where he outlined plans to address 'a decade of too much drift and division' since Brexit. Additionally, the government announced a new job guarantee scheme for young people receiving health or disability support, offering 100% wage coverage for up to 25 hours weekly over six months. The Conservative shadow work and pensions secretary, Helen Whately, criticised the policy as a rehash of a 'Conservative post-pandemic scheme' with no new ideas. Despite these criticisms, the Home Builders Federation welcomed the proposals, stating a well-designed scheme could 'make a meaningful difference for households struggling to get on to the property ladder.' The government faces challenges in meeting its target of building 1.5 million homes by the next election, with construction rates lagging behind the required pace. BBC Verify analysis showed a decline in new house construction during Labour's first year in power, continuing a downward trend that began under the previous Conservative government.

The prime minister says he wants people without support from the "bank of mum and dad" to receive help.

The prime minister says he wants people without support from the "bank of mum and dad" to receive help.

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