Prime Minister Andy Burnham will on Saturday launch a scheme offering first-time buyers a 20% equity loan on new-build properties, requiring only a 2.5% deposit, as part of a package designed to reignite hope among those who have given up on ever owning a home. The announcement, paired with plans to simplify council takeover of empty dwellings, comes as Burnham prepares for his first Labour Party conference since taking office.
A New Route on the Housing Ladder
The “Your First Home” programme will let buyers in England with a 2.5% deposit access a loan covering 20% of a new-build property’s value, with an initial interest-free period. Full details, including the duration of the interest-free window and any regional price caps, are expected in next month’s Budget. The government has not yet confirmed whether age restrictions will apply. Funding is to come from reprioritising existing budgets, though housing developers will contribute to running costs. Burnham insisted the initiative is aimed at those without “bank of mum and dad” support, saying: “Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own.” He added that the scheme would give builders confidence to deliver high-quality new homes.
The scheme is designed to bridge the gap between aspiration and reality for thousands of households.
Empty Homes Brought Back into Use
On Sunday, Housing Secretary Angela Rayner outlined plans to strengthen council powers to seize control of empty properties, targeting the more than 300,000 vacant dwellings across England. The move would make it simpler for local authorities to convert such stock into essential housing. Rayner said the government would explore further changes to protect councils from absorbing the costs of taking over empty homes.
Echoes of Help to Buy and Political Pushback
The policy closely mirrors the coalition’s Help to Buy scheme, launched in 2013 by George Osborne, which enabled buyers to put down a 5% deposit with a 20% shared-equity loan interest-free for five years. An evaluation found more than 387,000 properties were purchased, 328,000 by first-time buyers, but concluded the scheme did not remove affordability barriers in already expensive areas. Rayner said “Your First Home” would build on those lessons while retaining the benefits. The Home Builders Federation welcomed the proposals, calling them a meaningful step for households struggling to get on the ladder. Conservative shadow housing secretary Katie Lam countered that the plan would push first-time buyers into more debt, risk driving up new-home prices, and leave taxpayers holding a stake in homes for months. She accused Labour of making homes harder to build then asking buyers to borrow more, and said the Conservatives would scrap stamp duty, back British housebuilders, and build where people actually want to live.
Conference Context and Wider Pledges
The housing announcements come as Burnham arrives in Liverpool for his first Labour conference as leader, seeking to set a new direction after a decade of “drift and division.” He told the Guardian he can deliver radical change, arguing that the public would respect a government prepared to grab difficult reforms rather than play political games. On the conference trail, he also pledged quicker access to a guaranteed job for young people on health or disability support, with the offer coming three months after claiming benefits from next April, covering 100% of wage costs for up to 25 hours a week for six months. Rayner, meanwhile, admitted there was only a “slim chance” the government would meet its 1.5 million homes target by the next election, but said she was “not giving it up.” Conservative shadow work and pensions secretary Helen Whately criticised the move, saying Labour should have cut burdens on businesses rather than reviving a post-pandemic scheme, and questioned how it would be funded.
Why it Matters
The success of “Your First Home” will hinge on whether it can lower barriers without inflating prices, and whether councils can effectively reclaim empty stock. If it fails, it risks adding debt to a generation already priced out, while a slow construction rate means the 1.5 million homes target remains elusive. Burnham’s conference test is to show that his government can turn aspiration into brick and mortar, not just policy announcements.
