First-time buyer scheme income caps raised ahead of Budget
The government has increased income thresholds for its Your First Home scheme ahead of Wednesday’s Budget announcement, expanding eligibility for first-time buyers across England.
According to The Times, the maximum household income cap has been raised from the initially proposed £90,000 to £110,000 outside London, whilst the London cap has increased from £110,000 to £140,000.
Scheme details
The Your First Home programme will provide assistance with a 2% deposit on new-build properties, alongside a 20% equity loan from the government. A cap on property values will apply, similar to the previous Help to Buy scheme.
Neil Jefferson, chief executive at the Home Builders Federation, said: “Your First Home has the potential to help more people onto the housing ladder and support the increased delivery of much-needed homes, but its success will depend on the detail to be announced at the Budget.”
Jefferson added that income and house price caps, developer contributions, and the scale and duration of the scheme must be “carefully designed so it is attractive to customers and accessible to builders of all sizes across the country.”
Industry response
The revised thresholds address concerns raised by mortgage brokers that the original caps could exclude high-earning couples, particularly key workers in London. Research indicated that two paramedics in the capital, each earning the reported average salary of over £60,000, would have a combined household income exceeding £121,000, which would have been above the initial £110,000 London cap.
The changes come as the property sector continues to navigate challenges around affordability and access to homeownership. Whilst recent research highlights information gaps affecting home movers, government intervention through deposit assistance schemes remains a key policy tool.
The scheme applies to new-build properties only, which could provide support to housebuilders facing market pressures. Full details of property value caps, regional variations, and the scheme’s duration are expected to be confirmed in the Budget statement.
