What Andy Burnham's housing agenda means for first-time buyers and homeowners

Key takeaways

• Your First Home is a new equity loan for first-time buyers in England. The government will lend 20% of the value of a new-build home, and you'll only need a 2.5% deposit.
• The Lifetime ISA is being replaced by a First Time Buyer ISA with no withdrawal penalty. It's expected to launch in April 2028, and existing LISAs can stay open.
• The Budget on 28 October is the next big date on the horizon. We're expecting more detail on Your First Home, and possibly some announcements on property tax.
• Mortgage rates still depend more on the Bank of England than they do Downing Street. The base rate remains at 3.75%, but three of the nine rate-setters voted to raise it in September.

Your First Home: the new scheme for first-time buyers

Burnham announced Your First Home on 26 September, just before Labour's conference in Liverpool. It follows a similar model to the former Help to Buy scheme, and is aimed at helping first-time buyers who don’t have any family support available to them. The full details will be confirmed in the budget, but here is what has been announced so far.

The scheme intends to help people who have a regular income, but might be struggling to borrow enough or save a large enough deposit. First-time buyers who have big savings pots already built up or big salaries are expected to be excluded from the scheme. 

How it works:

• The government lends you 20% of the property's value as an equity loan
• You put down a deposit of just 2.5%
• Your mortgage covers the rest (around 77.5%)
• The loan is interest-free at first. We don't yet know for how long.
• It's only for new-build homes in England

What we don't know about Your First Home yet 

There’s a lot that remains unknown about the scheme, and the government has confirmed we’ll learn more at the autumn budget on 28th October. While Burnham has hinted at property price caps and salary and savings caps, we don’t yet know what these might be. In addition, we don’t know yet how long the interest-free period lasts or what a buyer would pay after it ends. 

How does Your First Home compare to Help to Buy?

This will all feel familiar if you remember Help to Buy, the government's previous scheme for buyers. It also offered a 20% equity loan on new builds (40% in London), interest-free for the first five years. The main difference that should pique the interest of first-time buyers across the country is the deposit. Your First Home needs just 2.5% instead of 5%, which means £7,500 upfront on a £300,000 home rather than £15,000.

But Help to Buy had its critics. The government's own evaluation, published this month, found that around 54% of buyers could have bought without it. Homes bought through the scheme also sold for a premium compared with similar new builds.

Housebuilders were among the biggest winners, with the evaluation finding a clear boost to their profits. Investors clearly expect the same again: housebuilder shares jumped by 13–22% the day after Your First Home was announced.

The scheme did help get homes built, though. It supported around 15% of new homes in England while it ran. The Budget on 28 October will show whether Your First Home has learned from Help to Buy. The price caps and income limits will be the key details to look out for.

What has the reaction been so far? 

The Home Builders Federation welcomed the scheme. Critics, including the Conservatives, warn it could push up new-build prices and leave buyers with more debt. Rayner says the scheme will "build on the lessons learned" from earlier ones.

Our take at Tembo?

What does it mean for you? 

An equity loan doesn't cut the cost of your home. It changes how you pay for it. You'll need to repay the loan eventually, and because it's usually a share of the home's value, you'll pay back more if prices rise. A smaller deposit can also mean fewer mortgage deals to choose from and higher rates. Before you commit, it's worth comparing the full cost over time with other options, like saving a bigger deposit or looking at shared ownership or a guarantor mortgage.

Lifetime ISA changes: what's happening

On 9 September, the government confirmed it will replace the Lifetime ISA (LISA) with a new First Time Buyer ISA. The idea was put out for consultation in June, before Burnham took office.

How the LISA works now:

• Save up to £4,000 a year and get a 25% government bonus (up to £1,000 a year)
• You can open one between 18 and 39 and pay in until you're 50
• You can use it for a first home worth up to £450,000, or for retirement from age 60
• If you take money out for anything else, there's a 25% charge. That means you lose the bonus and some of your own savings too

What's changing with the new First Time Buyer ISA:

• It’s for first homes only. There's no retirement option
• No withdrawal penalty. The Treasury says it's "specifically designed to support first-time buyers and without penalty for withdrawals"
• There will still be a government bonus and a property price cap, but the amounts haven't been confirmed. The proposals included a 25% bonus paid when you buy and no upper age limit
• Expected launch: April 2028 (although a lot could change before then!)

If you already have a LISA: You won't be forced to move your money. Under the proposals, existing accounts stay open and you can keep paying in. The current rules still apply until then, including the £450,000 cap and the withdrawal charge.

Also changing: From April 2027, the annual limit for cash ISAs will fall from £20,000 to £12,000. People aged 65 and over will keep the £20,000 limit. If you're saving for a deposit in a cash ISA, this could affect how much you can put away tax-free each year (tax treatment depends on individual circumstances and may be subject to change in the future).

What it means for you: If you're saving for a first home now, the LISA bonus can still be one of the best savings products available. It’s not often in life you get handed £1,000 a year, so you don't have to stop paying in because a new account is on the way. Just check the £450,000 cap against the prices where you want to buy, and remember the withdrawal charge if your plans might change. A mortgage adviser can help you work out whether your LISA, and your mortgage plans could fit together.

Mortgage rates: what's moving them

A change of Prime Minister hasn't changed the basics: the Bank of England base rate and market movements like swap rates are what drive mortgage pricing.

On 17 September, the Bank held the base rate at 3.75%. The vote was 6–3, with three members wanting to raise it to 4%. Energy prices have risen because of the conflict in the Middle East, and inflation reached 3.1% in August. The next decision is on 5 November.

Politics still plays a part. Burnham and Healey have said they'll stick to the government's fiscal rules, and markets will be watching the Budget closely for signs of more borrowing. If gilt yields rise, lenders often reprice fixed-rate deals soon after.

What it means for you: If your fixed rate ends in the next six months, it's worth looking at deals now. Many lenders let you secure a rate several months ahead, and you may be able to switch using our RateCheck service if something better comes along before you complete.

Council housing and affordable homes

Burnham promised "the biggest programme of council house building since the Second World War." The first delivery details came on 2 September:

• £10 billion of the £39 billion Social and Affordable Homes Programme has been allocated
• It will fund 70,000 homes in the next 10 years, so far 60% allocated to social rent
• Only about 2,800 (under 4%) will be council homes. Most will be delivered by housing associations, developers and other partners
• Only 3 of the 33 partners are councils (Cambridge, Eastleigh and Newcastle). Housing associations and other providers will build most of the homes
• Councils will also get stronger powers to turn more than 300,000 empty homes into council housing

What it means for you: More social housing is a long-term project, so it won't change prices for buyers in the next year or two. Over time, it could ease pressure on rents in high-demand areas.

Property tax: no changes yet

Before becoming PM, Burnham criticised council tax, which is still based on 1991 values, and suggested replacing stamp duty and council tax with a land value tax. None of this has been announced yet.

Here's what we do know:

• The High Value Council Tax Surcharge (the "mansion tax") on homes in England worth over £2 million is set to start in April 2028. The government is reviewing feedback from the consultation.
• Stamp duty rules haven't changed. First-time buyers pay nothing on the first £300,000 of a home worth up to £500,000.

Watch for any property tax changes in the Budget on 28 October. Big reforms like a land value tax would take years to put in place.

Renting: new rules are already here

A lot of change for renters is coming from the Renters' Rights Act, which Burnham inherited:

• Since 1 May 2026: no-fault (Section 21) evictions have ended, tenancies have become rolling (periodic), rent can only go up once a year through the formal process, and landlords can't ask for more than one month's rent in advance or encourage bidding wars
• From late 2026 into 2027: a national landlord database and a new landlord ombudsman are being introduced

As Mayor of Greater Manchester, Burnham introduced a Good Landlord Charter and tougher enforcement, and he has spoken positively about rent controls. No national rent controls have been announced.

What should I do? Our top tips

First-time buyers

• Your First Home could make buying a new build possible with a much smaller deposit, but wait for the full details in the Budget before you plan around it. 
• In the meantime, keep saving. If you have a LISA, keep paying in to get the bonus, and check that the £450,000 cap works where you want to buy. 

Home movers

• There are no stamp duty changes yet, and property tax reform is likely to be years away. Base your plans on today's rates and prices, and keep an eye on the Budget.

Remortgagers

• The base rate is still on hold, but mortgage rates are rising. So check when your current deal ends, as you could lock in a deal up to six months in advance. 

Landlords

• Make sure you're following the Renters' Rights Act rules already in place, and get ready to register on the landlord database. More regulation could be coming under Burnham.

Conclusion

We now know much more about Burnham's housing plans. There's a new route onto the ladder for first-time buyers, a simpler savings account on the way, and a slower start to council housebuilding than he promised. A lot still depends on the Budget on 28 October, so if you're planning a move in the next year, focus on what you can control: your deposit, your borrowing and the timing of your deal.

And stay tuned in. We’ll be covering the October budget in full when it comes around.