Should the UK Government offer equity loans to first‑time buyers with deposits as low as 2.5%?
The UK government under Prime Minister Andy Burnham announced the Your First Home equity loan scheme on 26 September 2026. It will allow first-time buyers to purchase new-build homes with a 2.5% deposit supported by a 20% government equity loan that is initially interest-free. Full details will be set out by Chancellor John Healey in the October 2026 budget and the scheme aims to boost housebuilding while helping those without family financial support.
3 Opinions
A 2.5% deposit leaves buyers one minor market dip away from negative equity. I think we need to stop pouring demand-side petrol on a supply-starved fire
We should build enough housing to reduce house prices to an affordable level, not pile on more debt
Devil in the details, I do not want next student loan to be write off and increasing inflation.