The UK government is set to introduce the Your First Home scheme, allowing households earning up to £110,000 to apply for government-backed loans aimed at first-time buyers. In London, the earnings cap may reach £140,000, facilitating access for middle-income earners. The scheme will provide equity loans covering 20% of new-build properties, with an initial interest-free period and deposits as low as 2.5%.
Details regarding the scheme, including salary limits, are expected to be confirmed in the upcoming Budget. The initiative aims to support homeownership while addressing housing supply challenges in England.
As the Budget approaches, keep an eye on the final salary caps and eligibility criteria for the Your First Home scheme. Watch for potential implications on housing supply and how developers will adapt to contribute to costs, impacting the market dynamics.