Labour government raises income caps for first-time buyer equity loan scheme
The government plans to let households earning up to £110,000 apply for the new Your First Home equity-loan scheme, with a £140,000 limit for London purchases.
The Labour government is preparing to launch the Your First Home scheme, offering equity loans equal to 20% of the cost of new-build homes from approved developers. Buyers will need only a 2.5% deposit, and the loans will enjoy an initial interest-free period. Income limits are set to reach £110,000 for most of England, with a higher ceiling of £140,000 for purchases in London, after earlier drafts of £90,000 and £110,000 were deemed too restrictive for professions such as teachers and nurses.
Funding will come from current government spending, though details on offsetting cuts remain unclear, and participating developers will contribute to administrative costs. The design mirrors the earlier Help to Buy equity-loan schemes that ran from 2013 to 2023.
Why it matters
Higher income caps could broaden access to affordable homeownership and boost new-build housing supply.
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