Londoners hoping to take advantage of the Government’s new first-time buyer scheme should start preparing to buy now, according to Michael Burt, Sales Director at heritage and new build developer City & Country.

Announced on Saturday 26th September, ‘Your First Home’ is expected to allow eligible first-time buyers to purchase a new-build home with a deposit of just 2.5%, supported by a 20% government-backed equity loan with an initial interest-free period.

This support could be particularly significant for first-time buyers in London, where the barriers to homeownership remain high. Just 14% of England’s recent first-time buyers were based in London in 2024-25, compared with 22% a decade earlier. The average age of a first-time buyer in London has also risen from 33 to 35 over the same period.

Michael Burt, Sales Director at City & Country, said: “For many Londoners, saving a sizeable deposit while paying high rents is the biggest hurdle to buying their first home. The new scheme could help reduce that upfront barrier, but there are steps prospective buyers should be taking now to put themselves in the strongest position possible.”

Much will depend, however, on where the Government sets the property price caps. The precursor to Your First Home, the Help to Buy scheme, operated with a national property value cap of 600,000, with buyers able to access an equity loan of up to 20% of the purchase price, or up to 40% in London.

Michael added: “The caps need to reflect today’s housing market and recognise the significant variation in house prices across the country. If the caps do not adequately reflect the realities of the capital’s housing market, many London properties could fall outside the eligibility criteria.

“While we wait for the detail, there are several things prospective buyers can be doing now to put themselves in the strongest possible position.

“Firstly, first-time buyers should keep building their deposit. A scheme that reduces the upfront amount needed doesn’t mean saving should stop. Buying a home comes with other costs, such as legal fees and surveys, and having an additional financial buffer is essential.

“Secondly, it’s important to get mortgage-ready. Buyers should check their credit score, look closely at their monthly outgoings, and understand what they could realistically afford. The scheme may help with the deposit barrier, but they will still need to demonstrate that they can afford a mortgage.

“I’d also encourage those hoping to use the scheme to start their home search now. Looking at new-build developments in their preferred areas, comparing prices and understanding what they can get for their money will put them in a stronger position. Once the property price caps are announced, they’ll have a much clearer idea of which homes could be available through the scheme.

“Finally, it’s also important for first-time buyers to consider whether the scheme is the right option for their individual circumstances. There may already be a home that suits their needs without using the scheme, so buyers should consider the options available to them now alongside their longer-term plans, rather than focusing solely on whether a property meets the scheme’s eligibility criteria.”

City & Country has over 60 years’ experience restoring and converting historic and listed buildings, alongside developing new homes across England.

Its London development, The 1840, is located in Tooting and comprises a collection of one, two and three-bedroom apartments within a restored former hospital building. One-bedroom apartments are currently available from 425,000.