Ahead of the Autumn Statement, new research from specialist lender Together reveals that a majority of young people are optimistic about the Government’s new Your First Home scheme.
The scheme will provide first-time buyers in England - with a minimum 2.5 per cent mortgage deposit - with access to a government-backed loan of 20% of the value of a new-build property to help them bridge the affordability gap.
Over two-thirds (67%) of 18-34 year-olds say Your First Home will make it likelier they can buy a house, with 36% saying it could finally make homeownership achievable. Among the general population, 55% believe the scheme could make homeownership achievable.
While optimism on the impact of the scheme is high, a quarter (27%) say they need to see the scheme’s eligibility criteria before coming to a conclusion on if it will help them. While eligibility requirements are to be confirmed in the Budget, it’s rumoured that households will need to earn less than £110,000 to qualify for the government's new loan scheme for first-time buyers, or £140,000 for homes bought in London.
The research also polled the UK public on their preferences for action in the Budget on the housing market. When asked what the Government needs to do to build confidence back into the market, support with council tax ranked highly. Over a third (37%) called for better support with council tax payments and a review of tax bands to help affordability.
Public opinion on what the Government needs to do in the Budget to rebuild confidence in the housing market
- 37% - Better support with council tax payments and a review of tax bands to help affordability
- 33% - Clearly set out intentions on Stamp Duty, including whether reform is planned and what the timetable will look like
- 32% - Give councils and housing associations the funding to deliver social housing at scale
- 26% - Introduce measures to encourage downsizing to free up larger family homes
- 25% - Use the Budget to unlock brownfield land and regenerate existing communities
- 23% - Focus the Budget on removing the barriers that prevent consented homes from being built
- 19% - Don't penalise or stigmatise investing in property
Scott Clay, Director of Private Clients at Together commented: “With over half of people believing Your First Home could improve their chances of buying a property, there’s clear demand for schemes that make homeownership feel achievable. The Budget is a key opportunity to turn that optimism into a practical route onto the housing ladder. A potential new First-Time Buyer ISA could offer another way to save.
“That said, it’s the detail that matters: eligibility criteria, property price caps, costs and how these schemes work in practice will determine who really benefits. The impact on housebuilding will matter too, particularly whether developers can deliver enough eligible new homes in the places buyers need them, alongside a sufficient supply of previously purchased First Homes coming back onto the market.
“Not every buyer will be suited to the same route. Shared Ownership can also offer a valuable alternative for those priced out of buying outright, so long as the full costs are understood. Ultimately, success won’t be measured by the announcement itself, but by whether more people can sustainably afford a home of their own.”
