27/09/2026
Andy Burnham just said the government wants a 20% stake in new-build homes. Here's what that actually means.
The PM has announced "Your First Home" — a scheme to get first-time buyers on the ladder with just a 2.5% deposit (half of the old Help to Buy's 5%).
Here's how the numbers split on a purchase:
→ 2.5% — your deposit
→ 20% — government equity loan (interest-free)
→ 77.5% — your mortgage
The bit most people miss: that 20% isn't a fixed loan — it's a stake in your home's value.
Worked example:
• Buy at £200,000 → government's 20% = £40,000
• Property later valued at £500,000 → that same 20% is now worth £100,000
You don't just owe back what they lent you — you owe back their share of the growth. In this example, that's an extra £60,000 versus the original loan.
Why it matters for buyers:
✅ Smaller mortgage needed relative to income = easier to get approved, and lenders see less risk
⚠️ You give up a slice of any future gain
⚠️ If the property drops in value, the government shares that downside too — but it can limit your options if you're in negative equity
⚠️ Eventually paying it off usually means remortgaging once you've built up enough equity
One important caveat: none of these figures are locked in yet. The government says it'll confirm full details in next month's Budget.
Is this a genuine leg-up for people without the "bank of mum and dad" — or a rebrand of a scheme (Help to Buy) that critics say inflated new-build prices last time round?
