First-time buyers in Manchester can now see the limit for the government’s new Your First Home scheme: a new-build home must cost no more than £355,000 to qualify. Applications are expected to open in February 2027, and the first purchases should complete from April.
The scheme covers new-build homes in England sold by developers that choose to take part. The government has backed it with £4.7 billion over five years. It aims to help buyers who cannot rely on family money for a deposit.
How the numbers work at £355,000
Buyers put down a deposit of at least 2.5% of the price. The government adds an equity loan of 20%, which stays interest-free for the first five years. A repayment mortgage from a participating lender covers the remaining 77.5%.
On a home priced at the Manchester cap, that works out as follows:
- Deposit (2.5%): £8,875
- Government equity loan (20%): £71,000
- Mortgage (77.5%): £275,125
Cheaper homes need proportionally less on each line. Outside London, caps apply at local authority level and reflect local median prices. Manchester’s £355,000 sits between Reading (£375,000) and North Devon (£320,000), while Middlesbrough is capped at £220,000. A full list of caps by local authority can be found here.
Who can apply for the Your First Home scheme?
The buyer must be a first-time buyer and must use the home as their main residence. Household income can be no higher than £110,000 outside London (£140,000 in London). Buyers also need a repayment mortgage from a participating lender, so interest-only deals do not qualify.
The home itself must be an eligible new-build, sold by a participating developer and priced within the local cap. A cap is a limit on the purchase price, not a guarantee that homes at that price exist in your area, so the choice will depend on which developers sign up.
Developers can register from the end of December 2026. The government has said it will publish information on participating developers before the launch.
What to do now
Nothing is open yet. The government says customer pre-registration will open before the end of 2026. Signing up will not commit you to buying through the scheme, but it should give you more detail on your eligibility and the cap that applies in your area.
In the meantime, check your household income against the limit and talk to a mortgage adviser about what a repayment mortgage of around 77.5% would cost you. If you are eyeing a particular development in Manchester, ask the developer whether it plans to take part.
You can find out more about the Your First Home scheme here.
