New Government scheme aims to help Portsmouth first-time buyers onto housing ladder

First-time buyers in Portsmouth could be able to purchase a new-build home with a deposit of just 2.5% under a new Government scheme due to be confirmed at next month’s Budget.

The “Your First Home” scheme will offer eligible first-time buyers a Government-backed equity loan worth 20% of the value of a new-build property, alongside an initial interest-free period.

The Government says the scheme is aimed particularly at people who do not have access to financial help from the so-called “bank of mum and dad”.

Further details, including household income limits, local property price caps, costs and the timetable for introducing the scheme, are expected to be announced by the Chancellor at the Budget.

Pre-registration is expected to open by the end of 2026.

The scheme will apply to new-build homes being sold by developers signed up to the programme, with participating developers expected to contribute towards its running costs.

The Government says the initiative is designed both to reduce the deposit barrier facing first-time buyers and encourage developers to bring forward new homes.

It comes alongside existing support for buyers, including the permanent Mortgage Guarantee Scheme.

Portsmouth South MP Stephen Morgan said the scheme could help people in the city who have struggled to afford their first home.

He said: “Here in Portsmouth, we have seen too many people priced out and giving up on the dream of ever having a home to call their own.

“This new scheme will make getting on the first rung of the property ladder just that bit easier and increase access to home ownership. For those in our city looking for their first home, Labour is a party that is on your side and fighting your corner.

“This Government delivering a new generation of equity loans in a Labour way, targeting support to those first-time buyers who need support the most and who don’t have the benefit of a large deposit from the ‘bank of mum and dad’.”

Prime Minister Andy Burnham said the Government wanted to help more people who were struggling with housing costs and unable to rely on family support.

He said: “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own.

“So, we will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the Bank of Mum and Dad.

“Your First Home will get them the keys to their own front door and give builders the confidence to deliver the high-quality new homes the country needs. This Labour Government is bringing back hope for people across the country.”

The Government confirmed on 26 September that Your First Home will operate in England and is expected to support 2.5% deposits through 20% Government-backed equity loans.

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