3 publishers · first seen Wed, 28 Oct 2026 16:04 UTC · updated Sat, 31 Oct 2026 04:35 UTC
Chancellor of the Exchequer John Healey announced the introduction of a new First-Time Buyer ISA scheme to replace the Lifetime ISA, aiming to help first-time buyers save for a deposit without incurring penalties if the property exceeds £450,000. He also announced the commencement of the Your First Home scheme, which will provide an equity loan worth 20% of the purchase price, interest-free for five years, to assist first-time buyers in purchasing a new-build home with a smaller deposit and mortgage. The scheme is expected to open for applications in February 2027.
First-time buyers are facing higher mortgage repayments, with new figures showing monthly costs have risen by £147 since November 2025. The government's proposed Your First Home scheme could help some purchasers access new-build properties with smaller deposits, but it is not expected to address every obstacle in the market. The Budget's wider impact on government borrowing costs and market confidence could prove as important as any direct housing measures.
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