Language
DEEN
Market analysis··1 min read

Your First Home scheme: Price caps cover 46 per cent of new-build sales in England

Government price caps under the English Your First Home scheme would have covered nearly half of all new-build sales last year.

AI generatedYour First Home scheme: Price caps cover 46 per cent of new-build sales in England – AI-generated illustrative image
Your First Home scheme: Price caps cover 46 per cent of new-build sales in England. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The price caps set by the British government for the 'Your First Home' support scheme would have covered 46 per cent of all new-build homes sold in England last year. This is shown by recent market data analyses examining the reach of eligibility criteria for first-time buyers in the new-build sector.

The state-backed model aims to make it easier for prospective buyers to purchase their first home, but links eligibility to strict financial caps on the purchase price. These thresholds are intended to ensure that assistance primarily takes effect in the affordable market segment.

Substantial regional discrepancies in scheme coverage

A detailed examination of English sub-markets reveals significant regional differences. While slightly less than half of new-build transactions nationwide fell below the scheme limits, market coverage fluctuates considerably across regions.

This disparity is particularly pronounced when comparing the capital with more peripheral regions. Contrary to the general assumption of high barriers to entry in London, the proportion of qualifying sales there sat above the national average:

  • —London: 58 per cent of new builds sold were within the defined caps.
  • —South West: Only 40 per cent of newly constructed residential properties met the criteria.
  • —North East: Likewise, 40 per cent of new-build sales fell below the threshold.

In both the South West and the North East of England, six out of ten new homes therefore failed to meet the initiative's price specifications. Market observers attribute these differences to the regionally varying relationship between the defined limits and actual local construction costs.

For property developers and first-time buyers, the calibration of these price thresholds proves to be a critical factor for market access. If the maximum caps sit too close to average construction costs for new residential buildings, the pool of eligible properties for the target audience shrinks noticeably.

Looking for
a real estate
agent?

Michael Freitag — founder of FREITAG® Immobilien
Michael Freitag
Founder of FREITAG® Immobilien GmbH
More than 15 years of experience in Bavaria & surroundings
— FREITAG Immobilien

Your discreet partner for institutional transactions in German-speaking Europe.

As a premium real estate firm based in Munich we advise investors, family offices, developers and long-term holders on the acquisition, sale and valuation of residential, income and commercial properties — confidential, close to the market and on equal terms.

3.600+
municipalities on our market radar
48 h
first assessment of your property
Off-market
discreet circle of buyers
DACH
DE · AT · CH
— Confidential contact

Let us talk about your portfolio.

Acquisition profiles, off-market opportunities, valuations or development enquiries — we reply personally within 24 hours, NDA as a matter of course.

Phone
+49 (0) 89 158 90 140
Email
E-Mail anzeigen
Office
Munich
— More news
— Most read in the journal