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Burnham Unveils Scheme to Help First-Time Buyers
Confirmed
In Short: Prime Minister Andy Burnham unveiled a new scheme aimed at helping first-time buyers enter the housing market, including a deposit requirement of just 2.5% and a government-backed equity loan covering up to 20% of the property's value.
The scheme, known as 'Your First Home,' is designed to support first-time buyers purchasing new-build properties. According to Burnham, the initiative will enable buyers to put down a deposit of £5,750 on a property with an average price of £230,000, and access a £46,000 equity loan.
Burnham outlined the plan during his speech at the Labour Party Conference, emphasizing the need to address longstanding issues in the housing market. He criticized previous governments for treating housing as a market of 'winners and losers' rather than an essential need.
Jonathan Rolande, a property expert, responded to a reader's query about whether the scheme would impact home values. He stated, 'Although we haven’t heard the full details of the scheme yet, I’d say not directly, and not soon.
The scheme has received support from housing developers. City and Country, which is transforming the former M&S building in Colchester into the high-end multi-use Minerva House, welcomed the initiative. The developer noted that the scheme would allow buyers to purchase a home with a deposit of just 2.5% and access a government-backed equity loan.
Funding for the scheme will come from existing government budgets, with housing developers also contributing to running costs. Burnham emphasized the importance of the initiative, stating, 'So we will step in to help more first-time buyers on to the housing ladder, especially those who can’t call on the bank of mum and dad.
What's confirmed
- Your First Home is for first-time buyers of new-builds only.
What's still developing
- “We don’t let people who sell food damage health, so why do it with homes,” Burnham said during his speech.
- Burnham indicated a 10-year plan for housing would be published later this year.
- Prime Minister Andy Burnham has outlined a series of housing policy measures at the Labour Party Conference, including reforms to first-time buyer schemes, leasehold legislation, and new powers for local authorities to address empty and substandard properties.
- Burnham committed to introducing leasehold reform legislation before Christmas, addressing longstanding concerns from leaseholders.
- The government also plans to increase council home construction and reform the Right to Buy scheme, though specific details were not provided.