Burnham unveils new scheme to help young first-time buyers onto housing ladder

People who don’t have support from the “bank of mum and dad” to purchase their first home will get access to new help-to-buy scheme, Andy Burnham has announced.

High living expenses have led many young people to abandon hopes of home ownership, a situation the Prime Minister expressed concern over and pledged to change.

Under the Your First Home scheme, buyers could secure a property with a deposit of just 2.5 per cent.

A government equity loan covering 20 per cent of the property's overall value will be provided to support the purchase.

This loan will be interest-free initially to maintain affordability.

With the average UK starter home costing £230,000 according to Rightmove, buyers could provide a £5,750 deposit and access up to £46,000 in loan support.

Full details will be presented by the Chancellor John Healey at the Budget on October 28.

Announcing the measure as he arrived in Liverpool for Labour’s annual conference, the Prime Minister said: "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.

"So we will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the bank of mum and dad.

"Your First Home will get them the keys to their own front door, and give builders the confidence to deliver the high-quality new homes the country needs. This Labour government is bringing back hope for people across the country."

Funding will be drawn from reprioritised existing Government spending.

Housing developers will also fund running costs, which ministers hope will give the industry confidence to construct new homes.

Housing Secretary Angela Rayner stated: "We’ve seen too many people priced out and giving up on the dream of ever having a home to call their own.

"This scheme will make getting on the first rung of the property ladder just that bit easier and increase access to home ownership.

"For those looking for their first home, this is a Labour government that is on your side and fighting your corner.

"Your First Home will build on the lessons learned from previous schemes, while retaining the benefits, giving more families the building blocks for a better life and boosting the housing market as we turn the page on the housing crisis the Tories left behind.

"We’re delivering a new generation of equity loans in a Labour way, targeting support to those first-time buyers who need support the most and who don’t have the benefit of a large deposit from the bank of mum and dad."