A proposed government Your First Home scheme could more than double the number of new-build homes affordable to single first-time buyers in England, according to analysis by Rightmove.
The property platform estimates that the number of currently available new-build homes within the reach of an average solo first-time buyer could rise by 114% under the proposed Your First Home scheme.
The analysis suggests the scheme could increase the maximum purchase price affordable to an average single buyer from £216,758 to £265,703 — an increase of almost £49,000.
At the same time, the amount needed for a deposit could fall from £10,838 to £6,643.
The figures are based on an assumption that a buyer can borrow 4.5 times their annual salary and compare a standard purchase using a 5% deposit and 95% mortgage with the proposed Your First Home model.
Under the scheme, buyers would put down a 2.5% deposit, with a 20% government-backed equity loan and a mortgage covering the remaining 77.5% of the property’s value.
Rightmove’s regional analysis suggests buyers in the North West could have the widest choice of new-build homes under the proposed scheme.
Around 31% of currently available new-build properties in the region could potentially be affordable to an average solo first-time buyer, compared with 20% under a standard 5% deposit and 95% mortgage.
Yorkshire and the Humber could see one of the largest increases in choice. The proportion of available new-build homes potentially affordable to an average single buyer could rise from around 10% to 22%.
The estimated proportions across England are:
| Region | Affordable today | Potentially affordable under Your First Home |
|---|---|---|
| North West | 20% | 31% |
| Yorkshire & The Humber | 10% | 22% |
| North East | 5% | 14% |
| East Midlands | 4% | 13% |
| West Midlands | 4% | 10% |
| South East | 4% | 9% |
| East of England | 3% | 9% |
| South West | 3% | 7% |
| London | 1% | 5% |
The analysis also found big differences between local housing markets.
Kingston upon Hull could have the largest proportion of affordable new-build homes, with around 75% of properties potentially within the reach of a solo first-time buyer earning the average wage for the region.
Liverpool follows at 72%, while Luton ranks third at 53%.
Other areas featuring among those with the highest estimated proportions include Blackpool, Hillingdon, Manchester, Bexley, Staffordshire Moorlands, Boston and Salford.
| Local authority | Region | Potentially affordable |
|---|---|---|
| Kingston upon Hull, City of | Yorkshire & The Humber | 75% |
| Liverpool | North West | 72% |
| Luton | East of England | 53% |
| Blackpool | North West | 51% |
| Hillingdon | London | 45% |
| Manchester | North West | 41% |
| Bexley | London | 40% |
| Staffordshire Moorlands | West Midlands | 39% |
| Boston | East Midlands | 38% |
| Salford | North West | 38% |
He said the combination of a smaller deposit and a 20% equity loan could increase the maximum price an average solo buyer could afford by almost £50,000, while reducing the amount they need to save upfront.
However, he said the impact was likely to vary considerably between local housing markets.
“The final details announced at the Budget will be crucial, particularly any income and property price caps and regional variations,” Slater said.
“However, the early figures underline the potential for a well-targeted scheme to help more first-time buyers overcome both the deposit and borrowing barriers.”
Rightmove said its figures should be regarded as an early indication of the potential impact of Your First Home, rather than a forecast of the number of buyers who will ultimately qualify.
The analysis is based on currently available new-build homes, average salaries and the elements of the scheme announced so far.
Actual affordability and eligibility will depend on the final rules, individual buyers’ financial circumstances, lender affordability assessments and which developers participate in the scheme.
The calculations use regional average weekly earnings data from the Office for National Statistics and assume that a single first-time buyer can borrow 4.5 times their annual salary.
The government has yet to announce the scheme’s final eligibility requirements, with further details expected to be confirmed at the Budget.
