Gleeson warns that first-time buyer scheme will stall sales

Gleeson Homes has warned that the Government’s new scheme for first-time buyers will “postpone demand” and “increase cancellations” until it launches in the Spring.

It follows the boss of Bellway saying last week that the Government’s new incentive for first-time buyers will only provide a “modest” boost. Jason Honeyman, the company’s Chief Executive, said Your First Home would not “supercharge housebuilding”.

Chancellor John Healey unveiled the scheme, which is only available for new-builds, in his Budget last month.

Pre-registration will be open by the end of December, and full applications from February 2027, with the first loans issued from April.

Cancellations

Gleeson, which specialises in affordable housing, said in a trading update: “The Group welcomes the Government’s introduction of the Your First Home scheme.  We believe that YFH has significant potential to assist Gleeson’s target demographic of first-time buyers looking to buy a new home at an affordable price.

“The announcement of the scheme some five months before its launch is likely to postpone demand in the intervening period and to increase cancellations.

“We anticipate a weaker first-half, with the pace of recovery in the second half increasingly dependent on the efficient and timely introduction of the scheme.”

Your First Home will provide 20% equity loans, with a minimum deposit set at 2.5%, and maximum of 15%. The loans will be interest-free for the first five years