Buying your first home in 2026 can be a huge financial mountain to climb.
Deposits to save, fees to pay, mortgage with lofty interest rates to be approved.
In 2014, the average age of a first-time buyer in England (excluding London) was 31.9, according to the latest English Housing Survey, which has risen to 33.6 in 2026.
Some say Brits have an unhealthy obsession with owning property compared to countries across Europe. We were all brought up to believe that there was a linear path to big life events. You meet someone, you get married, you buy a home, you might have kids and you retire. Home ownership was a badge of honour, a symbol of success, a King in his castle.
Many are now beginning to recognise that with the current economic climate in the UK, the path to home ownership isn’t so straightforward as it once was. If you’re a millennial, your boomer parents may not fully understand what the hold up is. Why are you still renting? Isn’t paying rent dead money? Why can’t you buy a house already?
Why renting could have an impact on affording your first home.
The facts speak for themselves and one of the issues is how much renting eats into your income. On average mortgage holders spent 19% of household income on mortgage payments vs private renters who spend 39% of income on rent. That means that the proportion of income that goes to living costs is proportionately higher for renters, meaning it’s very hard to save a deposit whilst renting.
In response to this, the Government has announced the new equity loan scheme called ‘Your First Home’ for England (full details to be confirmed at next month’s Budget).
What does the scheme look like?
The scheme is designed to help first time buyers get on the property ladder by offering 2.5% deposits versus the 5% deposit typically needed for a 95% mortgage.
The Government is expected to offer 20% government-backed equity loans but there is a caveat. This scheme is only applicable for new-build properties from developers who are signed up to the scheme. Pre-registration is due to open by the end of 2026.
First time buyers looking to buy a £250,000 new build would now require a £6,250 deposit, a £50,000 equity loan and a £193,750 mortgage.
There are still details to be confirmed by the government, including how long the initial interest-free period would last.
What are the risks?
Whilst a £6,250 deposit versus a £25,000 deposit on a £250,000 new build is substantially more affordable to save for, it does come with its risks. Other help to buy initiatives have had a mixed response from Financielle Community members with some experiencing negative equity in their home, where their home is worth less than the mortgage and loan secured against it, which can leave people unable to sell or remortgage
How do you feel about the scheme? Is it something you’ll look to take advantage of when it’s open and available to first time buyers? Have you been negatively impacted by any help to buy schemes in the past?
Let us know by emailing us at hello@financielle.com