The homes you can actually get with the new first-time buyer scheme

Detailed summary

Eligible first-time buyers can purchase a new-build home with a deposit of just 2.5 per cent, alongside a government-backed equity loan of up to 20 per cent. Household income is…

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First-time buyers across England know how much they can spend under the Government’s new £4.7bn Your First Home scheme – but what kind of property that budget will realistically buy?

Following the recent Budget announcement of the scheme – which allows first-time buyers to purchase new builds with a small deposit – ministers published individual property price caps for every local authority in England.

Research from property portal Zoopla suggests that while flats are largely within reach of the scheme, buying a newly built family house could prove much harder.

So, how far does the new scheme stretch in Britain’s biggest cities – and what kind of home can you actually get?

Designed to help around 70,000 households onto the property ladder and support 20,000 new homes, the scheme is set to open for applications in February 2027.

Eligible first-time buyers can purchase a new-build home with a deposit of just 2.5 per cent, alongside a government-backed equity loan of up to 20 per cent. Household income is capped at £110,000 outside the capital and £140,000 within London.

The scheme applies strictly to newly built properties, meaning buyers looking at older, second-hand homes cannot use it, and in each area, there is a maximum house price they can pay.

Local authority caps: £650,000 (Inner London boroughs, including Camden, Islington, Lambeth and Newham) and £500,000 (Outer London boroughs, including Croydon, Ealing, Hounslow and Barnet).

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