Government price caps for the Your First Home scheme would have covered 46% of new-build homes sold in England last year, according to analysis by Connells Group.
The Government published regional property price caps for the scheme, setting maximum values for properties eligible under the programme in each local authority area.
Regional variations show significant differences in coverage, with 58% of new-builds in London falling within the thresholds, compared to 40% in both the South West and North East of England. Approximately 53% of homes across England sit within 5% of the cap, the research found.
Flat market coverage
The scheme shows stronger coverage for flats, with 67% falling within price caps nationally. This rises to 92% in the East Midlands but drops to 56% in the North East. By comparison, 41% of new-build houses met the criteria, ranging from 28% in London to 47% in Yorkshire and Humber.
Aneisha Beveridge, Research Director at Connells Group, said the caps should provide first-time buyers with access to both flats and smaller houses in most areas. “While larger houses mostly sit above the price caps, this isn’t unreasonable for a scheme designed to support first-time buyers,” she stated.
Market implications
Beveridge noted that whilst the figures indicate which existing stock qualifies for the scheme, the caps may influence future housebuilder strategies. “Longer term, the caps will start to shape what homes housebuilders decide to deliver,” she said.
The price thresholds may also impact the flat market by encouraging more first-time buyers to consider apartments to access the interest-free equity loan benefit. This shift in buyer behaviour could have implications for property transaction processes as the scheme gains traction.
The Your First Home scheme represents a targeted intervention in the first-time buyer market, with price caps set to balance accessibility against housing delivery objectives across different regions of England.
