Burnham Unveils 20% Home Loan Scheme for Buyers With 2.5% Deposits

3 articles · Updated · bbc.co.uk · Sep 26

England first-time buyers would be able to buy new-build homes with a 2.5% deposit under Labour's "Your First Home" plan, backed by a government equity loan worth 20% of the property value.
The scheme is aimed at young people shut out of home ownership without help from the "bank of mum and dad," with Burnham saying it should also give builders confidence to deliver more new homes.
Labour said the equity loan would start with an interest-free period, with fuller details due in next month's Budget and pre-registration set to open before year-end.
Ministers have yet to confirm key limits including any age restriction or property price cap, while funding is expected to come from reprioritised budgets and developer contributions to running costs.
The policy echoes earlier shared-equity programs such as 2013's Help to Buy, which offered 5% deposits and 20% interest-free loans on new-build purchases.