The programme will give a helping hand to prospective homeowners, including a 20 per cent equity loan, which will be interest-free for five years.
People will be able to buy a new-build home with just a 2.5 per cent deposit.
Due to disparities in house prices and average incomes across the country, the cap on property value included in the scheme varies area-by-area, and has been calculated to support access to “modest homes”.
The highest cap sits at £650,000 and includes prestigious areas of central London such as Westminster and Kensington & Chelsea, while the lowest cap comes in North Lincolnshire at £215,000.
The scheme is expected to open for applications in February, with the first sales in April.
Buyers will normally need to be a first-time buyer, buying a new-build home in England, within the relevant local price cap, use the property as their main home and have a total annual household income of £110,000 or less outside London, or £140,000 or less within London.
They must also be able to obtain a mortgage from a participating lender which will carry out affordability checks.
In Blackburn with Darwen, the cap will be £275,000, while Burnley will have one of the lowest caps, at £230,000, and Hyndburn’s cap is £240,000.
In Pendle, the cap will sit at £250,000, the Ribble Valley’s cap is the highest in East Lancashire at £280,000, while Rossendale’s is £270,000.
Aneisha Beveridge, Connells Group research director, said: “The level at which the caps have been set should give would-be first-time buyers access to a choice of both flats and smaller houses in most areas, ensuring healthy take-up of the scheme.
“While larger houses mostly sit above the price caps, this isn’t unreasonable for a scheme designed to support first-time buyers.
“In the short term, these figures show what existing stock can likely be sold using Your First Home, but longer term, the caps will start to shape what homes housebuilders decide to deliver.
“The new price caps may also help breathe life back into the flat market by encouraging more first-time buyers to consider apartments in order to benefit from the interest-free equity loan.”
Full list of Your First Home scheme price caps in each Lancashire area
Blackburn with Darwen, £275,000
Blackpool, £235,000
Burnley, £230,000
Chorley, £300,000
Fylde, £275,000
Hyndburn, £240,000
Lancaster, £285,000
Pendle, £250,000
Preston, £280,000
Ribble Valley, £280,000
Rossendale, £270,000
South Ribble, £265,000
West Lancashire, £275,000
Wyre, £255,000
