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The programme, unveiled in an interview with the Guardian on the eve of Labour's party conference in Liverpool, is aimed at buyers in England who have a steady income but have been unable to put away enough for a big deposit, or who do not have financial backing from their parents.
Under the scheme, first-time buyers will receive a 20% equity loan to help them purchase a new-build home. There will be an initial interest-free period, and buyers will need a minimum deposit of just 2.5%.
To make sure the support goes to those who need it most, the government will introduce household income caps and a deposit cap. These are designed to exclude people on the biggest salaries and those with large savings pots. Price caps will also be applied so that buyers can only purchase modest homes.
Burnham said: "Too many young people are struggling with housing, with many giving up hope on ever having a home to call their own. So we are going to help more first-time buyers on to 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."
The prime minister also set out plans to strengthen the powers of local leaders to take over long-term empty and derelict homes, reversing changes made by the Conservatives.
The new scheme marks a shift from the approach taken under Keir Starmer's government. Housing ministers and officials had argued for a new version of help to buy, but they were ultimately overridden by then chancellor Rachel Reeves, who wanted to focus more on boosting housing supply.
The original help-to-buy scheme, launched by George Osborne in 2013, supported 387,000 people. But it was criticised for being targeted at those who would have got on the housing ladder anyway, and for contributing to soaring house prices. Burnham said adjustments had been made to focus the new scheme on those who really need support.
Officials said the programme would be announced by John Healey in the budget and open for registration by the end of 2026. It will be funded by reprioritising existing government budgets. It was not immediately clear whether the money would come from funding already earmarked for housebuilding, or whether it would mean cuts elsewhere.
Source: the Guardian — https://www.theguardian.com/politics/2026/sep/26/andy-burnham-announces-new-scheme-for-first-time-home-buyers-england