‘Your First Home’ raises homeownership hopes among young adults

Over two-thirds (67%) of 18-34 year-olds said ‘Your First Home’ will make it more likely for them to buy a house, with 36% saying it could make homeownership achievable, according to new research from Together.

Among the general population, 55% believe the scheme could make homeownership possible.

The scheme will provide first-time buyers in England with a minimum 2.5% mortgage deposit with access to a government-backed loan of 20% of the value of a new-build property to help them bridge the affordability gap.

While optimism on the impact of the scheme is high, a quarter (27%) say they need to see the scheme’s eligibility criteria before coming to a conclusion on if it will help them.

Together recently polled the UK public on their wish list for this week’s Budget.

Although the prime minister has ruled out stamp duty changes, 33% want the government to set out clear intentions on the tax, including whether any reforms are planned.

Scott Clay, director of private clients at Together, commented: “With over half of people believing ‘Your First Home’ could improve their chances of buying a property, there’s clear demand for schemes that make homeownership feel achievable.

“The Budget is a key opportunity to turn that optimism into a practical route onto the housing ladder. A potential new first-time buyer ISA could offer another way to save.

“That said, it’s the detail that matters: eligibility criteria, property price caps, costs and how these schemes work in practice will determine who really benefits.

“The impact on housebuilding will matter too, particularly whether developers can deliver enough eligible new homes in the places buyers need them, alongside a sufficient supply of previously purchased first homes coming back onto the market.

“Not every buyer will be suited to the same route. Shared Ownership can also offer a valuable alternative for those priced out of buying outright, so long as the full costs are understood.

“Ultimately, success won’t be measured by the announcement itself, but by whether more people can sustainably afford a home of their own.”