The Government has unveiled a series of housing measures in its Autumn Budget. This includes new support for first-time buyers and changes to savings products designed to help people get onto the property ladder.
With housing affordability still proving a challenge for many potential buyers, the announcements could provide new opportunities for people looking to realise their dream of buying their first home.
Your First Home equity loan scheme
One of the biggest housing announcements was confirmation of the new Your First Home scheme. This will provide £4.7bn of government-backed lending to help around 70,000 households in England onto the property ladder and support the delivery of an estimated 20,000 new homes.
The scheme will work in a similar way to the old Help to Buy scheme. Eligible first-time buyers can receive a government equity loan towards a new-build home. With Your First Home, this will be up to 20%, with buyers needing a deposit of just 2.5%.
To be eligible, household income must be no more than £110,000 outside London or £140,000 in London. Property price limits will depend on the local area, with separate caps of £650,000 for inner London and £500,000 for outer London.
The scheme will also include a five-year interest-free period on the equity loan, after which charges will gradually increase.
Participating lenders and developers are yet to be confirmed. Pre-registration will open by the end of December 2026, followed by full applications from February 2027. The first loans are expected to be issued from April 2027.
New First Time Buyer ISA to replace Lifetime ISA
There was also news for people saving for their first home. From April 2029, the Government plans to introduce a new First Time Buyer ISA to replace the Lifetime ISA for new savers. It will retain the 25% government bonus on contributions of up to £4,000 a year, giving savers up to £1,000 in government support annually.
The bonus will be paid when savings are used to buy an eligible first home worth up to £450,000. The maximum government bonus will be £20,000.
Unlike the Lifetime ISA, the new ISA will have no upper age limit, making it accessible to more first-time buyers.
Lifetime ISA withdrawal penalty reduced
The Budget also included a change for existing Lifetime ISA holders looking to buy a home above the £450,000 limit. From 29 October 2026, the withdrawal charge for a qualifying first-home purchase above this limit will fall from 25% to 20%. This will reduce the penalty and help protect more of savers’ own contributions.
What does the Budget mean for the housing market?
The Autumn Budget included several measures to improve access to housing. These include helping first-time buyers overcome the deposit barrier, making it easier to save for a home.
Whether you’re buying your first home, moving or considering other routes to homeownership, understanding your options is important. A mortgage adviser can guide you through the schemes and mortgages available. They can also help you work out what you could afford and the most suitable way forward.
Start your home buying journey, speak to a mortgage adviser today!
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
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