A new national housing scheme aimed at helping first-time buyers onto the property ladder with a deposit as low as 2.5% has been announced at the Labour Party Conference in Liverpool.
The “Your First Home” programme, unveiled on 26 September 2026, is designed to support those who cannot rely on financial assistance from parents. The initiative will be available to eligible buyers across England, including residents in Bognor Regis and the wider Arun district, who are looking to purchase new-build properties.
Under the proposals, the government will provide a 20% equity loan to successful applicants. This loan is intended to be interest-free for an initial period, significantly reducing the amount of up-front capital required to secure a mortgage. Full details of the scheme, including the specific length of the interest-free period and regional price caps, are expected to be confirmed by Chancellor John Healey in the Budget on 28 October 2026.
How the scheme works
The “Your First Home” scheme differs from previous initiatives by lowering the traditional 5% deposit requirement to 2.5%. For a national average starter home priced at approximately £230,000, this would mean a required deposit of around £5,750.
The new scheme introduces specific restrictions to ensure support is targeted effectively:
- New-build homes: The scheme is strictly limited to the purchase of newly constructed properties.
- Income and property caps: Household income limits and maximum property price caps will be introduced to ensure the fund supports those most in need.
- Financial targeting: The programme is specifically aimed at buyers without access to the “bank of mum and dad.”
While the announcement was made by Andy Burnham, the implementation is a national government policy. The Guardian reports that the move is part of a broader strategy to increase homeownership among younger generations who have been priced out of the current market.
Next steps for buyers
Prospective buyers in the Bognor Regis area cannot yet apply or pre-register for the scheme. The government has indicated that the full operational details and timelines for the rollout will be part of the autumn Budget statement.
Until the 28 October 2026 announcement, specific price caps for West Sussex remain unconfirmed. These caps will determine the maximum value of a home that can be purchased through the scheme in the local area, reflecting regional variations in the housing market.
Financial experts advise that while the lower deposit makes entry to the market easier, buyers will still need to meet standard mortgage affordability criteria for the remaining 77.5% of the property value not covered by the deposit or the government’s equity loan.