Ahead of the budget announcement scheduled for Wednesday, the UK government has adjusted the financial criteria for first-time buyers of residential property. Specifically, the relevant upper income limits for the 'Your First Home' support scheme have been raised to open up access to government support for broader groups of buyers.
Differentiated increase by region
For regions outside the capital, London, the decision provides for an increase in the maximum permitted annual household income. The cap here rises from the previous £90,000 to £110,000. This new regulation significantly widens the pool of eligible individuals outside the capital and reflects the changed financial conditions across the country.
In Greater London, the adjustment is even more substantial given local price levels. The household income threshold has been raised from £110,000 previously to £140,000 now. First-time buyers in the capital who previously sat just above the old threshold will thus regain access to the support scheme.
Overview of the adjustments
- —Regions outside London: income limit raised from £90,000 to £110,000
- —Greater London: upper limit increased from £110,000 to £140,000
- —Timing: implementation ahead of the official budget speech on Wednesday
Through the readjustment of the 'Your First Home' scheme, households that were previously excluded from state assistance due to rigid income criteria can now be considered. The decision marks a significant housing policy step towards facilitating home ownership.
The announcement of this measure comes immediately before Wednesday's upcoming budget speech. During this address, the government will present its broader fiscal and property policy guidelines for the United Kingdom in detail.
