Burnham launches 20% equity loan for first-time home buyers

Prime Minister Andy Burnham announced on Sunday that Labour will introduce a new “Your First Home” scheme to help first‑time buyers in England. The plan targets those who can put down a 2.5 % deposit and will provide an equity loan worth 20 % of a new‑build property’s value. The loan will be interest‑free for an initial period, with full details expected in next month’s Budget.

The move comes amid a wider housing crisis that has left many young people unable to afford the high deposit costs that have driven up the price of new homes. Labour’s policy echoes earlier government initiatives such as the 2013 Help to Buy programme, which allowed a 5 % deposit on homes up to £600,000 and offered a 20 % shared‑equity loan. The new scheme is aimed specifically at first‑time buyers who lack “the bank of mum and dad” and who have been pushed out of the market.

Burnham said the loan would give builders confidence to deliver high‑quality homes, and the funding would come from re‑prioritising existing budgets, with developers covering running costs. Ministers have not yet confirmed whether the scheme will have an age limit or a cap on the property value. Conservative critics warned that the policy could increase buyers’ debt and push up new‑home prices, while Labour’s Housing Secretary Angela Rayner defended it as a necessary step to meet the party’s 1.5 million homes target.

Further measures were unveiled alongside the scheme, including plans to strengthen council powers to take over empty dwellings and bring them into use for essential housing. The proposals were presented ahead of the party’s conference in Liverpool and will be debated in Parliament. The next Budget will spell out the loan terms, eligibility criteria and how the scheme will be financed, setting the stage for a broader debate on how best to tackle the UK’s housing shortage.