Your First Home: what the Budget means for first-time buyers
Buying your first home can feel like a big step, especially when you’re working out how much deposit you’ll need and what your monthly costs might look like. The Budget has confirmed more details about Your First Home, a Government scheme designed to help eligible first-time buyers purchase a new-build home in England.
How could the scheme help?
Your First Home is expected to bring together a deposit of at least 2.5%, a 20% Government equity loan and a repayment mortgage for the rest.
For example, on a £300,000 home, the Government’s illustration uses a £7,500 deposit, a £60,000 equity loan and a £232,500 mortgage. This is an illustration, not a mortgage offer, and you’ll need to budget for other costs such as legal fees and moving expenses.
The equity loan will be interest-free for five years. Interest is set to be 1.5% in year six and 3% from year seven. These payments are separate from your mortgage and don’t reduce the amount you owe on the loan.
Would you be eligible?
The scheme is intended for first-time buyers who would struggle to buy without support. You’ll normally need to buy an eligible new-build home in England and live in it as your main home. Household income limits apply: £110,000 a year or less outside London, or £140,000 or less in London. You’ll also need to meet a local property price cap and a participating lender’s affordability and credit checks.
The property and developer must be part of the scheme. Meeting the headline criteria doesn’t guarantee approval.
How the price caps apply to Hopkins developments
The Government sets a maximum property price for each local authority. Here are the caps for the Hopkins developments listed:
Essex: Beaulieu, in Chelmsford, has a £410,000 cap. Bournewood Park in Braintree has a £435,000 cap, while Willow Grove in Colchester has a £385,000 cap.
Suffolk: Barsham Vale, Chediston Place and Wickham Gate are in East Suffolk, where the cap is £315,000. Church View, Mill Grove and The Elms are in Mid Suffolk, with a £350,000 cap. Abbots Vale is in West Suffolk, where the cap is £380,000.
Norfolk: The Tanner’s Quarter in North Norfolk has a £285,000 cap. Kingsfleet in Breckland has a £310,000 cap. Brundall Meadows and Church Farm are in Broadland, where the cap is £345,000. Loddon Rise is in South Norfolk, with a £350,000 cap.
These are local price limits. They don’t confirm that a particular home or development qualifies for the scheme. Hopkins Homes’ participation has not yet been confirmed. See the Government’s full list of local price caps for details.
What happens when the loan is repaid?
The equity loan will usually be repaid when you sell your home. The amount will normally be based on 20% of your home’s value at that time, so it could be more or less than the original loan. You may be able to repay some or all of it earlier, subject to the scheme rules.
Before making a decision, consider the future interest, mortgage and other costs of owning a home. The Government says it will publish full terms and conditions before applications open. You can read the latest Your First Home guidance.
Applications are expected to open in February 2027, with the first sales through the scheme anticipated from April.
Thinking about your first move?
You can start exploring your options now. On selected Hopkins Homes, our Deposit Contribution scheme may contribute up to 5% of the home’s price towards your deposit. Availability and terms vary. The offer is subject to your mortgage lender’s criteria and cannot be used with another Hopkins Homes offer.
Explore our new homes and speak to your local Sales Team to find out what support may be available.
Important information
Information about Your First Home is based on Government guidance published on 28 October 2026 and updated on 3 November 2026. It is correct as of 4 November 2026. The scheme has not yet launched. While the Government has published headline details, including income limits and local property price caps, full terms and conditions are still to come. Eligible homes, participating developers and lenders, and the expected timetable may be subject to change.
Hopkins Homes’ participation in Your First Home has not been confirmed. Hopkins Homes is not a mortgage adviser and cannot provide financial advice. Speak to an independent mortgage adviser and obtain independent legal advice before making a financial commitment.
Deposit Contribution is available on selected Hopkins Homes only and is subject to lender criteria and the full terms of the offer. It cannot be used with another Hopkins Homes offer.
Promotions are subject to change and may be withdrawn at any time.