Your First Home could slow the market before launch, major builder warns
Buyers may delay purchasing decisions in the months ahead of the launch of the Your First Home Scheme, a house builder warns.
The build-up to the launch of the Your First Home scheme could slow the housing market, it has been warned.
Chancellor John Healey is due to announce further details of the much anticipated Your First Home scheme in his Budget later this month.
So far, it has been revealed that the revived Help to Buy scheme will use a Government equity loan to support 2% deposits for first-time buyers to purchase a new-build.
There will be regional price and income caps but no launch date has been given yet.
The period ahead of its launch may influence the timing of purchasing decisions.”
But there are already concerns about the wider impact on the market.
Delivering Bellway’s full-year results this week, its chief executive Jason Honeyman (pictured) was cautious.
He acknowledged that the scheme “has the potential to provide substantial support for first-time buyers and help address the deposit and affordability constraints faced by many prospective homeowners”.
But he warns: “While the Government’s proposed Your First Home scheme has the potential to provide meaningful support for first-time buyer demand, the period ahead of its launch may influence the timing of purchasing decisions among some prospective customers.”
Financial performance
The house builder reported that total housing completions increased by 10.8% to 9,695 homes during 2025 at an average selling price of £324,404. Total revenue increased by 13.6% to £3.1billion.
Underlying operating profit increased by 5.6% to £320.6million.
Shareholders will receive a proposed total dividend of 75p per share, plus Bellway said it intends to return £150million to shareholders through a share buyback programme, with the first tranche of £50million launched in September 2026 and today increased to £75million.
Looking ahead, Bellway warned in its update that customer demand remains constrained by economic uncertainty and affordability pressures, with mortgage interest rates above prior-year levels, which could impact its financial performance and sales.
Given the lower opening order book and ongoing pressures on customer demand, the group said it is targeting total completions of between 9,000 and 9,400 in its 2027 financial calendar compared with 9.695 in 2026.
Honeyman adds: “The UK continues to face a substantial shortage of new homes, while affordability remains a major barrier for many prospective buyers. We therefore welcome the Government’s proposed Your First Home scheme, which has the potential to provide significant support for first-time buyers. We look forward to further detail on the scheme and to engaging with Government on its design and implementation.
“Bellway has the financial strength, operational capability and land bank to respond as market conditions improve and increase the delivery of much-needed new homes over the medium term.”
Now you know how the rest of the market will feel when the scheme is launched. FTB’s being encouraged to only buy new homes is not in anyone’s interest except the builders and landowners. What about all the first time sellers still caught in equity traps having overpaid for their first homes using the last Help To Buy SCHEME!! This new incentive HAS TO BE extended to whole of market not just new homes! The last scheme literally meant that half of the deposit was added to the price by builders meaning that everything sold was 10-20% overvalued. THIS SCHEME IS A SCAM but as it’s backed by the government no one seems to mind! Who do the buyers sue once they realise they have overpaid for their home? They can’t! Mortgage valuations need to be strictly governed by RICS to stop this from happening but they won’t be. All the professionals line up to make money out of this. So who is losing the money? FIRST TIME BUYERS!