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Two major housebuilders say the Your First Home scheme will slow new-build sales this winter rather than lift them, because the first loans are not due until April 2027. Gleeson Homes told investors on 6 November that the scheme is likely to "postpone demand" and increase cancellations [1][2], and Bellway's chief executive expects only a "modest" effect [3]. For anyone weighing up a Your First Home scheme new build in November 2026, that leaves a five-month gap and a real choice: reserve now and chase a developer incentive, or wait for the 20% equity loan and risk a busier spring.
Key Takeaways
- Your First Home gives first-time buyers in England a 20% equity loan on a new build, with a deposit of at least 2.5%, interest-free for five years. Applications open in February 2027 and first sales follow in April 2027, according to GOV.UK [4].
- Gleeson Homes expects a weaker first half as buyers wait, with recovery "increasingly dependent on the efficient and timely introduction of the scheme" [2]. Bellway's Jason Honeyman says it is "not going to supercharge housebuilding" [3].
- The loan is repaid as 20% of the home's value at the time of repayment, based on an independent valuation, so the sum owed rises and falls with the market [4].
- A snagging inspection before legal completion, and an RICS Home Survey Level 2 on a nearly-new resale, remain the buyer's main protection whichever route they take.
What the Your First Home scheme offers new-build buyers
The scheme was confirmed at the Budget, and official guidance was published on GOV.UK on 28 October 2026 and updated on 3 November [4]. It applies in England only and to new-build homes sold by registered developers. The headline terms, as set out on GOV.UK [4] and reported by The Negotiator [1], are summarised below.
GOV.UK's worked example: on a £300,000 home the buyer puts down £7,500, borrows £60,000 through the equity loan and takes a £232,500 repayment mortgage [4]. The Treasury expects around 70,000 households to be helped and around 20,000 additional homes supported, according to The Negotiator [3]. In London and the Home Counties the local price caps matter most: a flat that qualifies in one borough may not qualify a mile away [4].
Why Gleeson and Bellway expect a quiet winter
Gleeson Homes, a low-cost housebuilder, warned in its AGM trading update that announcing the scheme about five months before launch "is likely to postpone demand in the intervening period" and "increase cancellations" [2]. It expects "a weaker first half" with profits "significantly weighted" to the second half [2]. Its open-market net reservation rate for the eight weeks to 1 November was 0.53 per site per week, against 0.52 a year earlier [2][5]. Gleeson still sees "significant potential" in the scheme for its customers [2].
Bellway's chief executive Jason Honeyman gave a similar message to The Times, as reported by The Negotiator [3]:
"Your First Home is great for young people and it's the right thing to do. I think it'll be modest.", Jason Honeyman, Bellway [3]
"It's not going to supercharge housebuilding. I don't see the London market changing in the short term.", Jason Honeyman, Bellway [3]
The logic is simple. A buyer who can get a 20% equity loan from April has little reason to exchange in December with a 10% deposit, and some who have reserved may withdraw and reapply.
Prices in the South East add context. The Centre for Policy Studies modelled a viable inner London new-build flat at £775,000, attributing 57% to government-imposed costs, against £333,000 without them; its Chelmsford model gives £535,000 against £311,000, with 42% attributed to policy costs, as reported by Property Industry Eye [6]. These are think-tank models, not sale prices, but they show why a 20% loan still leaves a large mortgage here.
Wait for April 2027 or buy now? The November 2026 decision
There is no single right answer, and a surveyor does not give financial advice. The two routes carry different practical risks.
Buying now, without the scheme
Gleeson's warning suggests many sites will have unsold plots to shift before spring [2]. Developers in that position often offer paid legal fees, stamp duty contributions or upgrades. Lenders usually require incentives to be declared, and the valuer may take them into account. Three things deserve care:
- Reservation fees. A fee fixes the price and takes the plot off the market for a set period. Buyers should ask in writing what is refundable if they withdraw, and whether the developer would release them if they later decide to wait for Your First Home.
- Part-exchange pressure. Where a partner already owns, the developer sets the part-exchange price, and an independent valuation gives a second view.
- Completion deadlines. A developer keen to book sales before 31 December may press for a quick exchange. A fixed date should never squeeze out the snagging inspection.
Waiting for the scheme
The attraction is a 2.5% deposit and a 20% loan at 0% interest for five years [4]. The risks are timing and competition. GOV.UK states that "full eligibility rules will be published before applications open" and that guidance on minimum repayments, valuation requirements and fees is still to come [4]. If demand bunches in April, as Gleeson expects, the best plots and incentives may be gone before a loan is approved [2]. Honeyman's view that London is unlikely to change in the short term suggests the scheme itself is unlikely to move prices much either way [3].
What a 20% equity loan means for valuation
The loan is not a fixed sum. GOV.UK states that the buyer "will normally repay 20% of the home's value when you repay the loan, based on an independent valuation" [4]. Its own example: if a home bought for £300,000 is later valued at £320,000, the repayment is £64,000, not the £60,000 borrowed [4]. If the value falls, the repayment falls with it.
Two general consequences follow:
- The price paid sets the baseline. Because the loan is 20% of the purchase price, overpaying for a new build means borrowing more under the scheme as well as from the lender.
- The valuation at repayment sets the bill. Repayment is normally triggered on sale, but some or all can be repaid earlier, and an independent valuation may be required at that point [4].
If a home bought at a new-build premium is valued lower a few years on, the equity loan shrinks but so does the buyer's own stake. An independent RICS-regulated surveyor can provide a market valuation separate from both the developer's asking price and the lender's figure, useful at purchase and again when the loan is repaid or the home remortgaged.
Why snagging and a Level 2 survey still matter on a Your First Home scheme new build
A government loan does not change the quality of the building. It raises the stakes, because the buyer is borrowing from two sources against one asset.
Snagging before legal completion
A snagging inspection is a detailed check of a new home for defects and unfinished work by an independent inspector rather than the developer's staff. It should take place after the developer declares the home complete but before legal completion, so the snag list lands while the developer still has a commercial reason to fix items quickly. Typical findings include poor paint finishes, misaligned doors and windows, cracked tiles, missing sealant and extractor faults. Some developers limit access before completion, so buyers should write the right to an inspection into their reservation terms.
A Level 2 survey on a nearly-new home
Buyers who decide not to wait sometimes turn to nearly-new resales, which are not eligible for Your First Home because the scheme is new-build only [4]. A home a few years old will usually still be within its structural warranty, commonly ten years, but the warranty does not cover everything and claims depend on evidence. An RICS Home Survey Level 2 gives a condition rating for each element, flags defects needing further investigation and tells the buyer what to ask the seller or warranty provider before exchange.
A November 2026 checklist for Your First Home scheme new-build buyers
FAQ
Can the Your First Home scheme be used on a nearly-new or second-hand home?
No. GOV.UK states the scheme is for new-build homes in England sold by registered developers, within the local price cap, bought as the buyer's main residence [4]. A resale, even one a year old, falls outside it.
If a buyer reserves a new build now, can they switch to the scheme in April?
That depends on the reservation agreement and the developer. GOV.UK says full eligibility rules will be published before applications open [4], so nothing can be guaranteed today. Any such promise should be in writing, alongside the withdrawal terms.
Does the equity loan have to be repaid at a fixed amount?
No. It is normally repaid as 20% of the home's value at the time of repayment, based on an independent valuation, so the sum can be higher or lower than the amount borrowed [4]. Interest of 1.5% applies in year six and 3% from year seven, paid separately [4].
Will the scheme push up new-build prices in London?
Bellway's Jason Honeyman does not see the London market changing in the short term and expects the scheme's effect to be modest [3]. The Centre for Policy Studies' modelling attributes a large share of inner London new-build prices to policy costs rather than demand [6].
Conclusion
Your First Home is funded and dated, but it is not open yet, and the housebuilders who stand to gain most are planning for a slow winter. For first-time buyers in London and the Home Counties that means choosing between a possible incentive now and a 20% interest-free equity loan from April 2027. Practical next steps for November 2026: check the local price cap and income limit, read any reservation agreement line by line, and refuse to let a completion deadline squeeze out an inspection. Whether buying now or waiting, an independent snagging inspection before legal completion, a Level 2 survey on a nearly-new home and an independent valuation where the price looks stretched protect the buyer rather than the developer. Prince Surveyors' RICS-regulated team carries out snagging inspections, Level 2 surveys and valuations across London and the Home Counties, and can be booked ahead of the spring rush.
References
- David Callaghan, "Gleeson warns that first-time buyer scheme will stall sales", The Negotiator, 10 November 2026. thenegotiator.co.uk.
- Sharecast News, "MJ Gleeson warns of weaker first half as buyers await Your First Home", Hargreaves Lansdown, 6 November 2026. hl.co.uk.
- The Negotiator, "First-time buyers scheme only 'modest' boost, warns building boss", The Negotiator, 9 November 2026. thenegotiator.co.uk.
- Ministry of Housing, Communities and Local Government, "Your First Home", GOV.UK, published 28 October 2026, updated 3 November 2026. gov.uk.
- MJ Gleeson plc, "AGM Trading Update", Investegate (RNS), November 2026. investegate.co.uk.
- Property Industry Eye, "Housebuilding crisis deepens as government rules push up development costs", Property Industry Eye, 10 November 2026. propertyindustryeye.com.