By Emma Moore, Director of Residential Conveyancing
Following the Chancellor’s Autumn Budget on 28th October 2026, first-time buyers looking at new-build properties have received major news. The government has officially confirmed £4.7 billion in funding for the 'Your First Home' scheme, aimed at helping up to 70,000 households across England secure a new-build property.
While full scheme rules are yet to be published, the core framework is already set to reshape the property landscape when the first loans launch in April 2027.
Here is what the scheme involves, what to consider before reserving a plot, and how it impacts buyers across Lancashire and Greater Manchester.
Key features of the 'Your First Home' scheme
According to initial reports and government details, the scheme offers a new pathway onto the property ladder for eligible first-time buyers:
20% Government Equity Loan: The government provides a 20% equity loan toward the purchase of an eligible new-build home in England.
Low Minimum Deposit: Buyers can secure a home with a deposit as low as 2.5%.
Household Income Caps: Capped at £110,000 outside London (and £140,000 within London).
Local Price Caps: Property eligibility will be capped based on local authority median home prices.
Key Deadlines: The scheme is expected to open for applications in February 2027 with pre-registration guidance for customers and first developer registrations by the end of December 2026.
What this means for the North West: Regional price caps and local value
For buyers in Lancashire, Manchester and the wider North West, local price caps will be the defining factor.
Because regional caps are tied directly to local authority median property prices, the maximum purchase price ceiling in towns across East Lancashire (such as Burnley, Pendle, and Hyndburn) or parts of Greater Manchester will sit significantly below the London and South East thresholds.
While exact regional figure caps are pending official government publication, first-time buyers in the North West stand to benefit from lower overall entry prices, making a 2.5% deposit notably more achievable in local markets compared to national averages.
What First-Time Buyers Need to Consider (Legal & Financial Points)
While a smaller deposit makes entering the housing market easier, an equity loan adds specific legal considerations to the conveyancing process:
Second Charge on Your Property: The equity loan is secured as a second legal charge against your home behind your main mortgage lender.
Future Interest Charges: While interest-free initially, equity loans incur interest charges down the line—starting at 1.5% in year six and rising to 3% from year seven onwards.
Repaying the Loan: Because it is an equity loan (a percentage of your property's value), the amount you repay in the future increases or decreases depending on how your home’s value changes over time.
Developer Plot Reservation Checks: Before placing a reservation deposit on a new-build plot, your solicitor will need to check developer eligibility, building warranty compliance, and local authority planning consents.
How Farnworth Rose Helps New-Build Buyers
Navigating a new-build purchase involving government equity loans requires careful legal scrutiny. Our residential conveyancing team guides buyers step-by-step through:
Manging strict timelines which are often enforced by developers.
Government paperwork which has rigid administrative frameworks.
Reviewing Contract terms and conditions.
Explaining the legal implications and repayment obligations of the government second charge.
Coordinating directly with mortgage lenders and help-to-buy administrators to ensure smooth completion before builder deadlines.
Reach out to our Residential Conveyancing team for advice tailored to your situation.