Sophie, 32, bought a three-bed new build flat in Croydon with her fiancé in 2022, using a £30,000 deposit. Four months after moving in, he admitted to seeing someone else for a year and left. They sold the flat for less than they paid, and after fees and an early repayment charge, Sophie lost everything she had invested.
She moved into a house share and has since saved just over £14,000 for a new deposit. Earning £58,000 a year, she feels buying alone is a huge challenge. When Prime Minister Andy Burnham announced the Your First Home scheme, she hoped she might qualify—but she suspects she may not.
Your First Home Scheme Details
Announced on 26/09/26, the Your First Home scheme is a revamp of the Help to Buy equity loan. It is expected to offer first-time buyers in England a government-backed equity loan of up to 20% of the purchase price of a new build home. Buyers would need a 2.5% deposit and, subject to affordability tests, could get a mortgage for the rest.
Final details are due at the Autumn Budget, expected at the end of the month from Chancellor John Healey. The scheme is not open yet; pre-registration is expected by the end of 2026. Household income and local property price caps will apply.
Shared Ownership as an Alternative
Sophie is unlikely to qualify for Your First Home because she has already owned a property. However, she can access shared ownership, which does not require first-time buyer status. With her £58,000 income, she is under the £80,000 household income cap outside London (or £90,000 in London).
Under shared ownership, buyers purchase a share of a home—usually 25% to 75%, though some providers allow from 10%—and pay rent on the remainder. The deposit is based on the share, so Sophie's £14,000 could cover a reasonable slice. She must budget for mortgage plus rent, service charges, and leasehold costs.
Sophie is advised to consult a whole-of-market mortgage broker to review the numbers and explore options without schemes. She should also set aside funds for legal fees, mortgage valuation, survey, moving costs, and unforeseen extras.
Despite the setback, Sophie is determined to get on the housing ladder, and shared ownership offers a viable path forward.
