A £4.7 billion government scheme just reopened the door to homeownership for thousands of London renters, but the door does not swing open until April 2027. That gap matters more than most headlines suggest.
On 28 October 2026, the Autumn Budget confirmed the Your First Home equity loan scheme 2027, a government-backed programme offering 20% equity loans to first-time buyers, according to Propertymark. For London buyers priced out by deposits and rising rates, this is the biggest first-time buyer intervention since Help to Buy closed. But the scheme will not start handing out money for another five months, and even then, it will not remove the need for independent due diligence.
Prince Surveyors, RICS chartered surveyors working across London, sets out what is confirmed, what remains uncertain, and why a proper survey stays essential even with government help behind you.
Key Takeaways
- The Your First Home equity loan scheme 2027 offers a 20% equity loan, interest-free for five years, with deposits from 2.5% to 15%.
- Household income caps are £110,000 outside London and £140,000 inside London; property price caps are £650,000 in inner London and £500,000 in outer London.
- Pre-registration opens by end of December 2026; full applications start February 2027; first loans are expected from April 2027.
- The OBR expects only a marginal effect on housing supply, forecasting UK house price growth of about 2% in 2026 and 2.5% in 2027.
- Lender valuations under the scheme are not surveys, buyers still need an independent RICS Level 2 or Level 3 survey before exchange.
What the Your First Home Equity Loan Scheme 2027 Actually Offers
The scheme provides a government equity loan worth 20% of the property's value. It is interest-free for the first five years, easing monthly costs while buyers establish themselves.
Deposit requirements sit between 2.5% and 15%, giving buyers flexibility depending on savings. Household income limits are set at £110,000 outside London and £140,000 within London, reflecting the capital's higher wage base.
Property price caps are tighter in practice:
| Area | Price cap |
|---|---|
| Inner London | £650,000 |
| Outer London | £500,000 |
| Outside London | Not specified in Budget figures above |
This is not a repeat of Help to Buy. The structure, caps and timetable differ, and scheme rules may still be refined before launch. Buyers should treat current details as a strong indication, not final small print.
Key Dates to Diarise
- End of December 2026, Pre-registration opens
- February 2027, Full applications begin
- April 2027, First loans expected to complete
That leaves roughly five months between now and the first real applications, a window London buyers should use deliberately rather than waiting passively.
Why the Waiting Period Matters for London Buyers
The Office for Budget Responsibility expects the scheme to have only a marginal effect on housing supply. It forecasts house price growth of around 2% in 2026 and 2.5% in 2027, modest numbers that suggest no sudden price surge driven by the scheme itself.
Meanwhile, average effective mortgage rates are forecast to rise from about 4% in 2026 to around 5% by 2031, according to the OBR. Budgeting now, rather than in April, gives buyers time to stress-test affordability against rising rates.
Current market conditions also favour patient buyers. Zoopla reported on 27 October 2026 that London prices are down 1% year-on-year, homes are taking 56 days to sell, and there are 7% more properties on the market than a year ago. Nationwide's 30 October figures showed UK prices down 0.3% in October. This is a buyer's market in London, and that leverage will not necessarily last once scheme applications open.
Lifetime ISA and Savings Changes Worth Noting
From 29 October 2026, the Lifetime ISA withdrawal charge for first-home purchases above the £450,000 cap falls to 20%, down from the usual 25% unauthorised withdrawal charge. A new First Time Buyer ISA will replace the LISA for new savers from April 2029, offering £4,000 annual contributions, a 25% bonus up to £20,000, a £450,000 price cap, and no upper age limit.
These are savings vehicle changes, not scheme rules, and buyers should seek independent financial advice on how they apply personally.
Using November 2026 to April 2027 Wisely
The waiting period is not dead time. Buyers can use it to:
- Check affordability against the caps, confirm household income sits under £110,000 or £140,000 depending on location.
- Map target areas against price caps, £650,000 in inner London and £500,000 in outer London narrows the search significantly.
- Build a deposit buffer, even at the lower 2.5% threshold, London prices make this a meaningful sum.
- Watch the current buyer's market, with 56 days to sell and more stock available, there is room to negotiate before scheme demand potentially tightens supply.
- Budget for rising rates, plan around the OBR's forecast rise toward 5% effective rates by 2031, not just today's roughly 4%.
"A government-backed loan reduces your deposit burden. It does not reduce your responsibility to check what you are buying."
Why a RICS Survey Still Matters Under the Your First Home Equity Loan Scheme 2027
This is the point many first-time buyers miss: an equity loan does not replace a survey.
A lender's valuation is not a survey. It exists to protect the lender's security on the loan, confirming the property is worth roughly what is being lent against it. It does not check the roof, the damp course, the electrics, or structural movement.
For London first-time buyers, three areas deserve particular attention:
New-build snagging. Equity loan buyers are often drawn to new developments within the price caps. Snagging lists, doors that stick, poor finishes, incomplete fittings, are common even on recently completed homes. An independent survey catches these before legal completion, not after.
Older London flats. Many properties within the £500,000,£650,000 caps are converted period flats. These carry risks around ageing roofs, old wiring, damp, and structural alterations that a Level 3 Building Survey is designed to identify.
Leasehold checks. Flats dominate the London first-time buyer market, and leasehold issues, service charges, lease length, ground rent terms, sit outside what a mortgage valuation examines. These require separate legal and survey attention.
RICS Level 2 vs Level 3: Which Survey Fits
- Level 2 Homebuyer Report, suited to conventional flats and houses in reasonable condition, including many new-builds.
- Level 3 Building Survey, recommended for older conversions, period properties, or anything showing visible wear, extensions, or unusual construction.
How a Survey Supports Negotiation
In the current buyer's market, prices down 1% year-on-year in London and more stock available, per Zoopla, a survey report is also a negotiating tool. Identified defects give buyers grounds to request price reductions or repairs before exchange, rather than discovering costly problems after completion.
Conclusion
The Your First Home equity loan scheme 2027 is a significant development for London first-time buyers, but it arrives with a five-month runway before first loans complete in April 2027. Buyers should use this period to check their position against income and price caps, build their deposit, and watch the current buyer's market for negotiating opportunities.
Whatever route into ownership a buyer takes, an independent RICS Level 2 or Level 3 survey remains essential. Lender valuations protect lenders, not buyers. Prince Surveyors recommends booking a survey as soon as an offer is accepted, and taking independent financial advice on how the scheme, income caps and ISA changes apply to individual circumstances.
FAQ
Is the Your First Home equity loan scheme the same as Help to Buy?
No. It is a separate scheme with different caps, dates and structure, though both use an equity loan model. Do not assume Help to Buy rules apply.
When can I apply for the Your First Home equity loan scheme 2027?
Pre-registration opens by end of December 2026, full applications start February 2027, and first loans are expected from April 2027.
Does a lender's valuation replace a survey?
No. It only confirms value for the lender's security. It does not assess the property's condition, which is what a RICS survey covers.
What are the price caps in London?
£650,000 in inner London and £500,000 in outer London, based on the Autumn Budget announcement.
Could scheme details change before launch?
Yes. Full rules have not yet been published, so figures may be refined. Buyers should monitor official updates before relying on specifics.