Annual household income limits of £110,000 outside London and £140,000 in the capital are expected under the planned Your First Home scheme for first-time buyers in England. The BBC reports the proposed thresholds, citing earlier reporting by The Times. These are not yet confirmed eligibility rules, and the scheme has not been presented as open for applications.
According to the BBC, details, including the income caps, are expected to be confirmed at the Budget in the week following its report of 23 October. The plans concern England only, not the whole of the United Kingdom.
Equity loans worth 20% of a new home
Your First Home is expected to offer government-backed equity loans — loans linked to the value of the property being bought. Under the model described by the BBC, support would cover 20% of the value of a new-build home purchased from a participating developer. Buyers could be able to purchase with a deposit of as little as 2.5%.
The structure of that borrowing matters: an equity loan is linked to changes in the property’s value, rather than simply the amount originally borrowed. A rise or fall in the home’s value would therefore affect repayment. The plans also include an initial interest-free period, but its length and the interest terms that would apply afterwards have not yet been specified.
Final rules are still to come
For anyone considering buying their first home, the key distinction is between a proposed form of support and a scheme ready to use. The expected income caps alone do not establish who would qualify: full eligibility criteria and an opening date for applications have not yet been announced.
The BBC reports that the government says the scheme will be funded from existing budgets, with participating developers contributing towards its running costs. Details of the spending reallocations have not yet been set out. Confirmation of the rules will be needed before it is clear who can use Your First Home and on what terms.
