The October 2026 Budget confirmed two new schemes designed to help first-time buyers: the First Time Buyer ISA and Your First Home. Your First Home had been announced in outline before the Budget, with the detailed scheme confirmed as part of the Budget package.

First Time Buyer ISA

A new First Time Buyer ISA (FTB ISA) will launch on 6 April 2029 and will replace the Lifetime ISA (LISA) for new savers. Anyone who already has a LISA will be able to keep it and continue saving under the existing rules. From 29 October 2026, the withdrawal charge for LISA holders buying a first home above the £450,000 property price cap is reduced from 25% to 20%; the usual rules continue to apply to other withdrawals.

With the new FTB ISA, savers will be able to pay in up to £4,000 each tax year and receive a 25% government bonus when the funds are used for a qualifying first-home purchase. The maximum lifetime bonus will be £20,000. The account will be open to adults aged 18 and over, with no upper age limit (unlike the current LISA which has an upper age limit of 40). The home must cost £450,000 or less, be bought with a residential mortgage and be used as the buyer’s main home. Both existing homes and new-build properties can qualify.

Your First Home

Your First Home is a new equity loan scheme for eligible first-time buyers purchasing a new-build home in England. Pre-registration and guidance are expected by the end of 2026, applications are expected to open in February 2027, and the first purchases are anticipated from April 2027. Further guidance will be published before applications open.

The government has made £4.7 billion available for the scheme over five years, with the aim of supporting first-time buyers while also encouraging the building of new homes.

To use the scheme, buyers will normally need a deposit of at least 2.5% of the purchase price and a repayment mortgage from a participating lender. They must be first-time buyers, use the property as their main home, buy an eligible new-build in England from a participating developer, and stay within the local property price cap. Total annual household income must be £110,000 or less outside London, or £140,000 or less within London. Lenders will still carry out their usual affordability and credit checks.

The scheme provides a government equity loan worth 20% of the purchase price. It is interest-free for the first five years; interest is charged at 1.5% in year 6 and 3% from year 7. Interest payments do not reduce the equity loan itself. The amount you repay is linked to your home’s value: if the loan represents 20% of the purchase price, you will normally repay 20% of the property’s value at the time you repay it, based on an independent valuation. This means the amount due may rise or fall with the value of your home.

Developers of all sizes will be able to take part, provided they meet the scheme requirements. A list of participating developers and lenders will be published before the scheme opens.

Published price-cap examples include £220,000 in Middlesbrough, £320,000 in North Devon, £500,000 in Outer London and £650,000 in Inner London. A full list of local authority price caps is due to be published.

What this means for first-time buyers

Both schemes could make it easier to build a deposit or reduce the size of the mortgage needed for a first home. However, the FTB ISA will not launch until 2029 and Your First Home is not yet open for applications, so buyers should check the latest eligibility rules and consider appropriate mortgage, financial and legal advice before making any commitments.

For help with your first purchase, contact Kathryn Shaw at Charles French: kathryn.shaw@charlesfrench.co.uk