“Hope” is a buzzword that is being used a lot right now. At the recent Labor Party conference in Liverpool, “Hope Again” was the message spread across every podium, conference programme, escalator and delegate’s cup of tea.
For this industry in particular, the element of ‘hope’ was largely linked to the day before the conference in which the Government’s ‘Your First Home’ scheme was unveiled.
The first thing to say is that for years there are pages Mortgage strategy They called for a different formula for Help to Buy (which expired in 2023). So, on the face of it, there is progress.
Yes, Labour’s Your First Home bears clear similarities to the Conservatives’ Help to Buy scheme: both are exclusively linked to new build and aim to boost home ownership and housebuilding in the UK.
There is little value in stimulating demand for new homes if developers remain unable to implement workable schemes in a reasonable manner
But the government is keen to point out important differences in terms of the size of the deposit, who qualifies, and how support is targeted.
Labour’s proposal pushes buyer deposit requirements down from 5% to 2.5%, while keeping the government equity loan at 20%.
The proposed plan will have limits on family income and maximum limits on local real estate prices. The target group is those who can afford an ongoing mortgage but are struggling to accumulate a large deposit.
Another factor that sets Help to Buy apart is that developers are explicitly expected to contribute. This is where the details get a little fuzzy. The exact amount and mechanism have not been announced, but will be determined in the next budget.
As for what the industry understands from the scheme so far, cautious optimism probably sums it up best.
If this scheme increases the pool of buyers able to afford a new building, this should give developers greater confidence that there will be customers
Just Mortgages branch managing director John Doughty, like many in the industry, has long called for the return of the equity loan scheme to help address the deposit barrier faced by many potential first-time buyers (FTBs).
But he is keen to see details that the scheme lacks so far.
“We are eagerly awaiting the full details in the next Budget, in particular whether the new scheme will have a higher weighting to account for rising existing London property prices – a crucial element of the original Help to Buy.”
Doughty would also like to see the scheme include pre-owned properties to maximize opportunities and open up more potential buyers.
This is not up for discussion currently.
The government cannot keep adding to the costs of delivering the same homes it is trying to help people buy
Stephanie Charman, chief executive of the Association of Mortgage Brokers, agrees that the success of the scheme will depend on getting the details right – many of which need to be spelled out.
“We also need to understand how property price caps interact with existing FTB stamp duty thresholds, and whether enough suitable new homes will be available in the areas buyers need them,” she adds.
Michael Clifford, commercial director of District & County Investments, says that from a developer’s perspective, one of the key challenges at the moment is not necessarily a lack of underlying demand for high-quality housing but uncertainty over sales rates and how quickly buyers can close.
“If this scheme increases the number of buyers able to afford a new property, it would give developers greater confidence that there will be customers for the homes they build,” says Clifford.
We need to understand whether the number of suitable new homes will be available in the areas buyers need them
But he adds: “Details will be important, especially in relation to property price caps, eligibility criteria, developer contribution, and how quickly the scheme can be implemented.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Extending the scheme to all homes would be much better than just targeting new builds, and I can’t see much of a problem in doing so.
“However, any stimulus to the housing market is a good thing. The market is stable and needs some intervention to revive it.”
Neil Leitch, managing director of development finance at Hampshire Trust Bank, agrees that helping virtual commercial banks overcome the deposit barrier is to be welcomed, but believes that unless the government sortes out the planning process, there is a risk that much of this will be for naught.
“There is little value in stimulating demand for new homes if developers are still unable to get viable schemes through the system in a sensible and predictable way,” he says.
We are eagerly awaiting the full details, in particular whether the new scheme will have a higher weighting to take into account the rise in existing London property prices.
Leach adds that the contribution requirements for developers participating in the scheme also need careful consideration. Developers already face significant upfront planning costs and additional requirements associated with building safety.
“These costs are not experienced in isolation. They accumulate within the same valuation and directly impact viability. The government cannot continue to add costs to the delivery of the very homes it is trying to help people buy.”
All eyes are now on new Chancellor John Healey’s first Budget on 28 October, when the finer details of this blueprint will – hopefully – be clearly worked out!
This article appeared in the October 2026 issue of Mortgage strategy.
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