Earnings limit of up to £140K for first-time buyers loan scheme
The UK government is set to introduce the 'Your First Home' scheme, allowing first-time buyers with household incomes up to £140,000 in London to access equity loans. The policy aims to support middle-earning households while addressing the nation's housing supply shortfall.
Why it matters
This policy reflects the government's attempt to balance housing affordability with the economic reality of high property prices in major urban centers.
Image source, Getty Images By Paul Seddon Political reporter Published 11 minutes ago The government is expected to allow households earning up to £110,000 to apply for its new loan scheme to help first-time buyers in England.
As first reported by The Times , external , a higher earnings limit of £140,000 is expected to apply to those purchasing properties in London.
The Your First Home scheme will offer government-backed equity loans worth 20% of new-build properties purchased from participating developers.
The loans, which will also be subject to an initial interest-free period, are designed to help people buy a home with deposits as low as 2.5%.
Previous schemes to help first-time buyers did not restrict eligibility by income but faced criticism for stoking house prices by allowing relatively wealthy households to borrow more.
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