Andy Burnham announces new homes scheme for first-time buyers

Exclusive: Policy initiative for England will help more young people on to property ladder, prime minister tells Guardian

A new help-to-buy scheme aimed at giving first-time buyers who cannot rely on the “bank of mum and dad” is to be introduced in a big policy announcement by Andy Burnham.

The programme, called “Your first home”, is intended to help buyers in England who have a regular income but have been unable to save for a large deposit or don’t have financial support from their family.

Under the scheme, first-time buyers will get a 20% equity loan to help them buy a new-build home, with an initial interest free period and a requirement of a minimum deposit of just 2.5%.

Household income caps and a deposit cap will be introduced to exclude those on the biggest salaries and with big savings pots, with the scheme targeted at those who may struggle to buy a home on their own. Price caps will ensure people can only buy modest houses.