Announcement comes at the start of Labour’s annual party conference in Liverpool
Published Sun, Sep 27, 2026 · 03:49 PM
THE UK government said it would introduce a new loan programme to help first-time buyers purchase new-build homes, as Prime Minister Andy Burnham seeks to spur housing construction and help people acquire property.
The offer, which will be open to buyers with a 2.5 per cent deposit and provide a 20 per cent equity loan, will be set out in detail by Chancellor of the Exchequer John Healey at the Budget in October, the Labour Party said in an e-mailed statement. The plan will be funded by cutting government budgets elsewhere, the party said.
Burnham’s package, branded “Your First Home,” marks a revival of the “Help to Buy” programme that was introduced by former Conservative chancellor George Osborne and ran for a decade from 2013. A recent government-commissioned audit of “Help to Buy” found the initiative both increased housing affordability and housing supply.
“Too many young people are struggling with the cost of housing, with many giving up hope of ever having a home to call their own,” Burnham said in the statement. “We will step in to help more first-time buyers onto the housing ladder, especially those who can’t call on the Bank of Mum and Dad.”
Preregistration for the programme will open by the end of 2026, the government said.
The announcement comes at the start of Labour’s annual party conference in Liverpool, where Burnham is trying to build on a poll bounce and sustain some of the positive momentum he has enjoyed since becoming prime minister in July.
It also comes against the backdrop of Labour struggling to deliver on its flagship pledge to build 1.5 million new homes by 2029. The UK could miss that goal by at least 40 per cent, according to a report by Bloomberg Intelligence, as homebuilders have been hit by headwinds such as higher energy prices due to the US-Iran war and elevated mortgage rates stifling demand.
“Without some kind of intervention, the government risked permanently losing capacity in the housebuilding sector,” said Lucian Cook, head of residential research at Savills. “This announcement has the added advantage of coming at a time when house prices are relatively depressed. That means the government should enjoy a decent financial return on its investment, on the basis we see interest rates fall over the medium term.”
The original Help to Buy programme cost about £30 billion (about US$39.7 billion) over its decade lifespan while generating about £27 billion in loan repayment and income, according to the government-commissioned audit. The programme is estimated to have generated a net present social value of £25 billion due to the welfare gains of the increased supply in quality housing, the audit found.
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The government said developers will also pay toward the running of the programme and that the loans issued will have an initial interest-free period.
The offer “will build on the lessons learnt from previous schemes, white retaining the benefits,” Housing Secretary Angela Rayner said in the statement. “We’re delivering a new generation of equity loans in a Labour way.”
Employment support
Ahead of its four-day conference, Labour also announced plans to expand the government’s offer of state-subsidised work placements to include young people with health conditions.
Firms hiring under-24s with physical and mental health health problems or long-term conditions will have wages covered by the government for the first six months of employment.
The expanded support comes after interim findings of a government-commissioned report showed that nearly half of the one million young people not in education, work or training in the UK report having a disability, with poor mental health found to be a significant driver in rising youth unemployment.
The Jobs Guarantee policy launched by the government already offers taxpayer-funded work placements for those from ages 18 to 24 who have been unemployed for 18 months. Under these changes, the support will also be open to young people who have been on health benefits for 13 weeks from April 2027.
The eligible individuals will be offered a guaranteed job and tailored support for their health, finances and housing. The Government will help employers with onboarding costs and cover the full wage costs for up to 25 hours a week for six months, Labour said. BLOOMBERG
