Your First Home: What First-Time Buyers Need to Know After the Autumn Budget

If you’re hoping to buy your first home, the Autumn Budget included several announcements that could affect how you save for a deposit and eventually get onto the property ladder.

Within this raft of new support for first-time buyers was clarity around the Your First Home Scheme, which was first announced back in September.



How will the scheme work?
This £4.7 billion package of funding will help 70,000 first-time buyers across England get onto the property ladder.

Applications to the scheme will open in February 2027. Eligible buyers will be able to purchase a home using just a 2.5% deposit, alongside a Government-provided 20% equity loan which will be interest-free for five years. Buyers would then secure a 77.5% mortgage.

For example, a 2.5% deposit on a £300,000 home would be just £7,500. A 20% Government equity loan would provide a further £60,000, leaving £232,500 to be covered by a mortgage.

Without Your First Home, a buyer purchasing the same home with a standard 90% mortgage would typically need a £30,000 deposit and a £285,000 mortgage.



What else has changed for first-time buyers?
The Government has unveiled plans to improve the existing Lifetime ISA (LISA). This savings account helps buyers to save for a first home, adding a 25% bonus to already accrued savings. However, there is a catch - the LISA can’t be used to purchase a home over £450,000, or buyers will face a withdrawal charge.

The improvements to the LISA mean that buyers who withdraw their savings to purchase a more property valued over the price cap will get back all the money they put in.

A new First Time Buyer ISA will also launch in April 2029, with more details to be released.

Michael Burt, Sales Director at City & Country, said: “For aspiring homeowners, saving a deposit can feel like an uphill battle. Your First Home could bring buying within reach for more people, but understanding the details will be crucial.

“Before making plans, check the eligibility criteria carefully and establish whether the developments and individual homes you are considering qualify for the scheme.

“A smaller deposit could bring your first purchase closer, but your monthly costs still need to be manageable. Speak to a mortgage adviser about your circumstances and budget for the full cost of owning a home, including mortgage payments, bills and any service charges.

“Legal fees, surveys and moving costs also need to be considered, along with having some money set aside for unexpected expenses once you have moved in.

“Make sure you understand how the equity loan works, including how it will be repaid and what charges apply after the interest-free period. Getting advice early will help you consider the longer-term commitment alongside the immediate benefit of a lower deposit.

“Finally, it’s also important for first-time buyers to consider whether the scheme is the right option for their individual circumstances. There may already be a home that suits their needs without using the scheme, so buyers should consider the options available to them now alongside their longer-term plans, rather than focusing solely on whether a property meets the scheme’s eligibility criteria.”

Don't assume you need to wait until 2027 to buy your first home. Understand what you can afford now, what support is currently available to you and how Your First Home might change your options when it launches. Speak to our friendly sales advisers across any of our developments to find out how City & Country can help you to get onto the property ladder.