The property portal said the number of available new-build homes within reach of a single first-time buyer on the average salary could rise by 114% under the scheme, compared with purchasing through a standard 95% loan-to-value (LTV) mortgage.
Based on the details announced so far, Rightmove estimated that the maximum purchase price affordable to an average solo buyer would increase from £216,758 to £265,703, an uplift of almost £49,000. The required deposit would also fall from £10,838 to £6,643.
Alex Slater, Rightmove’s director of new homes, said: “Early analysis based on what we know about the Your First Home scheme so far suggests it could make a meaningful difference to the choice available to first-time buyers, particularly those purchasing on their own.”
Slater added: “The combination of a smaller deposit and a 20% equity loan could increase the maximum price an average solo buyer can afford by almost £50,000, while also reducing the amount they need to save upfront. This could bring thousands more currently available new-build homes within reach.”
Rightmove said the findings were an early indication of the scheme’s potential impact and noted that affordability and eligibility would depend on the final rules, individual circumstances, lender assessments and developer participation.
Industry, not regulation, must lead later life lending change
Sponsored by Suffolk Building Society Intermediaries
At a regional level, the North West could offer solo first-time buyers the widest choice of affordable new-build homes under the scheme.
Around 31% of currently available new-build homes in the region could be affordable under Your First Home, up from 20% under existing purchasing options.
Yorkshire and the Humber could see one of the largest improvements in affordability, with the proportion of accessible new-build homes rising from 10% to 22%.
“The impact is likely to vary significantly between local markets. In some areas, the biggest benefit could be an increase from a very limited number of affordable homes today. In others, buyers could gain access to a much wider overall pool of properties,” Slater said.
The analysis also highlighted potential gains in the North East, East Midlands and West Midlands, where the proportion of affordable new-build homes could more than double.
At a local authority level, Kingston upon Hull could offer the largest share of affordable new-build homes, with 75% of available properties potentially within reach of a solo first-time buyer earning the regional average wage.
Liverpool followed at 72%, while Luton ranked third at 53%.
Slater added: “The final details announced at the Budget will be crucial, particularly any income and property price caps and regional variations. However, the early figures underline the potential for a well-targeted scheme to help more first-time buyers overcome both the deposit and borrowing barriers.”
