Your First Home Scheme: Could First-Time Buyers Get on the Property Ladder with a 2.5% Deposit?

Could getting onto the property ladder be about to get a little easier?

For first-time buyers, particularly in London, saving for a deposit is often the biggest obstacle to owning a home, but a proposed new government scheme could offer a welcome helping hand. The ‘Your First Home’ scheme could allow first-time buyers to purchase a new-build property with a deposit of just 2.5%, supported by a 20% government equity loan and a mortgage covering the remaining 77.5%.

In real terms, that means a buyer purchasing a £400,000 home could need just £10,000 upfront for their deposit, rather than the £40,000 required for a traditional 10% deposit.

There are, of course, a few catches. The scheme would only apply to eligible new-build homes, with income and property price limits expected plus the government equity loan would also need to be repaid. Further details are expected in the Autumn Budget on 28 October, with the possibility of pre-registration opening before the end of 2026.

Could this be the boost first-time buyers have been waiting for? It's certainly a proposal worth watching, particularly in North West London, where getting that first foot on the property ladder can feel increasingly out of reach.

At Dutch & Dutch, we've been helping Londoners find their perfect property for over 125 years. If you're considering your first move, our residential team would be delighted to help.