# Labour's First-Time Buyer Scheme Faces Eligibility Hurdles Research suggests less than a third of new homes qualify for government support. - **Source:** [The Independent – UK](https://www.independent.co.uk/news/uk) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/3c56d676-6c2d-493c-8832-5c9c7597e97c ## Scheme Eligibility Constraints The government's Your First Home Scheme provides interest-free loans for new build properties to couples or individuals earning under £110,000 annually. However, research from SAM Conveyancing indicates that less than 30 percent of homes currently qualify. These restrictions are primarily driven by localized price caps that often fall below average market values. ## Regional Market Disparities Price caps vary significantly across England, creating uneven access for prospective buyers. In Oxford, zero new build properties sold over the last two years met the £415,000 cap, despite an average cost of £777,867. Similarly, in Worthing, only one of 90 new builds fell under the local £300,000 limit, highlighting a major geographical mismatch. ## London's High-Cost Barriers Central London areas like Westminster and Kensington face extreme eligibility challenges despite higher price caps reaching £650,000. Data shows that only 3.6 percent of homes in Islington and 3.8 percent in Westminster qualify. These figures demonstrate that even with elevated thresholds, the scheme remains inaccessible for the vast majority of local new builds. ## Government Defense of Policy A government spokesperson defended the initiative, stating it targets those needing support based on median prices paid by first-time buyers. They argued that the analysis fails to account for specific property types purchased by first-time buyers versus the broader market. Officials estimate the caps cover nearly half of all new builds sold last year. ## Industry Calls for Reform Andrew Boast, CEO of SAM Conveyancing, suggests expanding the scheme to include existing homes rather than limiting it to new builds. He argues this would provide buyers with more choice and help stabilize property prices. Currently, buyers are restricted to a small slice of the market, limiting the scheme's overall effectiveness for many. ## Financial Mechanics Involved The scheme requires a minimum deposit of 2.5 percent of the purchase price to participate. Caps are calculated by taking the median price paid by first-time buyers for new builds, adding 10 percent, and rounding to the nearest £5,000. The government aims to help 70,000 people enter the property ladder through these specific financial parameters. ## Practical Advice for Buyers Prospective participants are urged to verify which properties fall under local caps before committing to a purchase. Engaging a conveyancer early in the process is recommended to navigate the complexities of the scheme. Buyers should be aware that the limited inventory of eligible homes may necessitate a longer search period than initially anticipated. ## Broader Market Implications The debate highlights the tension between government intervention and market realities in the housing sector. While the policy intends to assist those without family financial support, the reliance on new build inventory creates structural limitations. Future success depends on whether the government adjusts these caps or expands the scope to include existing housing stock. ## Sources covering this story - https://www.independent.co.uk/news/uk/home-news/your-first-home-scheme-eligible-new-build-england-b3080832.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._