Gleeson Homes has cautioned that the government’s Your First Home scheme could postpone demand and increase cancellations in the months leading up to its April 2027 launch, creating a weaker first half for the affordable housing specialist.
The warning follows similar concerns from Bellway, whose Chief Executive Jason Honeyman stated last week that the scheme would provide only a “modest” boost and would not “supercharge housebuilding”.
Five-month gap raises concerns
Chancellor John Healey announced the new-build-only scheme in his Budget last month, with pre-registration opening by the end of December and full applications accepted from February 2027. However, the first loans will not be issued until April.
In a trading update, Gleeson acknowledged the scheme’s potential benefits for its target demographic but highlighted the timing issue: “The announcement of the scheme some five months before its launch is likely to postpone demand in the intervening period and to increase cancellations.”
The company added: “We anticipate a weaker first-half, with the pace of recovery in the second half increasingly dependent on the efficient and timely introduction of the scheme.”
Scheme details
Your First Home will provide 20% equity loans for first-time buyers purchasing new-build properties, with a minimum deposit requirement of 2.5% and a maximum of 15%. The loans will be interest-free for the first five years.
The concerns from housebuilders come as the property sector faces broader challenges, with mortgage brokers identifying transaction delays as a key issue in the current market. Meanwhile, lenders are increasingly turning to digital platforms to streamline the homebuying process.
The market impact of the announcement gap represents a challenge for developers focused on the first-time buyer segment, with potential buyers likely to wait for the scheme’s launch before committing to purchases. This could affect completion rates and cash flow for housebuilders during the first quarter of 2027.
