Chancellor Healey unveils £4.7bn Your First Home scheme and new First‑Time Buyer ISA

The autumn budget includes a 2.5% deposit requirement, income caps and price caps for the scheme, plus a replacement ISA for first‑time buyers.

By Felo News Desk · Published Wed, 28 Oct 2026 22:08:31 GMT

Chancellor of the Exchequer John Healey announced a £4.7 billion "Your First Home" scheme and a new First‑Time Buyer ISA during the autumn budget on 28 October 2026, according to the Standard and the Independent.

What happened

The budget set out that the Your First Home scheme will provide 20 % equity loans to first‑time buyers, with a maximum deposit of 2.5 % of the purchase price. Income caps are £110,000 per household outside London and £140,000 inside London. Price caps will be based on local‑authority median prices, with caps of £650,000 for inner London and £500,000 for outer London. The scheme will open for pre‑registration by the end of December 2026, accept full applications from February 2027 and issue the first loans in April 2027.

Healey also announced that a new First‑Time Buyer ISA will replace the Lifetime ISA, aiming to help savers whose intended property price exceeds the current £450,000 limit.

What the reports add

The Standard detailed the equity‑loan terms, income caps and price caps, and noted the five‑year interest‑free period for the loans. The Independent highlighted the policy shift from the Lifetime ISA to a dedicated First‑Time Buyer ISA, quoting Healey’s statement that the change is “taking action” for young people saving for their first home.

What was said

Healey told the House of Commons, as reported by the Independent, “For every young person who’s working hard, saving what they can, and dreaming of their first home, I’m taking action. I’m announcing that a First‑Time Buyer ISA will replace the Lifetime ISA.”

How it came about

Earlier coverage by Felo News explained the planned features of the Your First Home scheme, including the 2.5 % deposit requirement and 20 % equity loan, in a September 27 article (Your First Home scheme gives 2.5% deposit buyers a chance). The budget also follows a pre‑budget announcement on 26 October that Healey would deliver the autumn budget at 12:30 pm, with expectations of new housing support.

Key facts

The Your First Home scheme will provide 20% equity loans with a 2.5% deposit requirement. (standard.co.uk)
Income caps are £110,000 outside London and £140,000 inside London. (standard.co.uk)
Price caps are £650,000 for inner London and £500,000 for outer London. (standard.co.uk)
Pre‑registration opens by end‑December 2026; full applications from February 2027; first loans in April 2027. (standard.co.uk)
A new First‑Time Buyer ISA will replace the Lifetime ISA. (independent.co.uk)

Timeline

2026-09-27 — Felo News detailed the planned features of the Your First Home scheme.
2026-10-26 — Felo News reported that Chancellor John Healey would deliver the autumn budget on 28 October.
2026-10-28 — Chancellor John Healey delivered the autumn budget announcing the scheme and ISA.