Fewer than a third of the new homes sold in England would qualify for the government’s Your First Home scheme, according to new analysis of the local price caps published this week.
The study, by property specialists SAM Conveyancing, tested every new-build home sold to buyers in England over the past two years to see whether it would come in under the price cap for its local authority. The scheme is designed so buyers can put down a 2.5% deposit, with a 20% government equity loan that is interest-free for five years and a mortgage for the remaining 77.5%, but only on a new build, so the share of new homes under the local cap decides how much choice a first-time buyer has.
Across England, only 30% of new builds sold would have qualified. In 264 of the 285 local authorities analysed, the cap is set below the price of a typical new build, which means fewer than half of new homes in the area come in under it, and in 97 of them fewer than a quarter qualify.
Oxford comes off worst, with none of the 66 new homes sold to buyers in the city over the last two years coming in under its £415,000 cap. The typical new build in Oxford sells for £777,867, almost double the limit.
Worthing is next, where only one of the 90 new builds sold would have qualified under a £300,000 cap, compared to a typical new-build price of £409,472. Neighbouring Adur has a cap of £420,000, and nearly a third of its new builds qualify.
In Blackpool, one of 41 new builds would have qualified, with a typical new home selling for £305,621 compared to a cap of £235,000. Lancaster follows, where four of 131 new builds come in under the £285,000 cap and a typical new home costs £462,231.
Islington (3.6%), Westminster (3.8%), Hammersmith and Fulham (5.3%), Kensington and Chelsea (5.6%), Oldham (6.2%) and Burnley (7.6%) complete the ten local authorities with the smallest share of qualifying new builds.
Where the scheme does reach further, Melton, in Leicestershire, offers first-time buyers the most choice for the size of its population. Around 90 qualifying homes are sold in the district each year, or 17.0 for every 10,000 residents, with 35% of its new builds under the £300,000 cap. A typical qualifying home costs £263,451, which means a deposit of £6,586, half the £13,173 needed with a standard 5% deposit.
Mid Suffolk (14.8 qualifying homes a year for every 10,000 residents), Preston (10.7), South Norfolk (10.2) and Bassetlaw (10.1) complete the top five, and Liverpool sells more qualifying new homes than any other area, at around 445 a year, with 73% of its new builds under the city’s £235,000 cap.
In 221 of the 278 areas where a typical qualifying price could be set, the monthly mortgage payment on that home would be higher than the average local private rent, even before interest on the equity loan starts at 1.5% in year six, rising to 3% from year seven.
Commenting on the research, Andrew Boast, CEO of SAM Conveyancing, said:
“Limiting Your First Home to new builds was always going to restrict where first-time buyers could use it, and the price caps show just how tight that restriction is. Fewer than a third of the new homes sold in England come in under them, so in much of the country buyers will be choosing from a small slice of an already small market.
“We saw with Help to Buy what happens when support is funnelled into new builds alone: developers built the extra buying power straight into their asking prices. Opening the scheme to existing homes, with the equity loan based on an independent valuation instead of the agreed price, would give first-time buyers far more choice and help keep prices in check. Until then, anyone hoping to use it should check early which homes fall under the cap in their area, and speak to a conveyancer before reserving a plot.”
Rank | Local authority | Region | Price cap | Share of new builds that qualify | Qualifying new builds sold (Oct 2023 to Sep 2025) | Typical new build |
1 | Oxford | South East | £415,000 | 0% | 0 of 66 | £777,867 |
2 | Worthing | South East | £300,000 | 1.1% | 1 of 90 | £409,472 |
3 | Blackpool | North West | £235,000 | 2.4% | 1 of 41 | £305,621 |
4 | Lancaster | North West | £285,000 | 3.1% | 4 of 131 | £462,231 |
5 | Islington | London | £650,000 | 3.6% | 11 of 304 | £1,144,863 |
6 | Westminster | London | £650,000 | 3.8% | 11 of 290 | £2,985,610 |
7 | Hammersmith and Fulham | London | £650,000 | 5.3% | 36 of 677 | £1,244,511 |
8 | Kensington and Chelsea | London | £650,000 | 5.6% | 7 of 124 | £1,904,642 |
9 | Oldham | North West | £300,000 | 6.2% | 13 of 210 | £404,326 |
10 | Burnley | North West | £230,000 | 7.6% | 15 of 198 | £318,312 |
Source: SAM Conveyancing analysis of HM Land Registry, ONS and Ministry of Housing, Communities and Local Government data
