Homes boost: Help for buyers plan lifts shares in builders

By the Editorial Team · Tuesday, September 29, 2026

The UK government has launched a new Help to Buy scheme called “Your First Home,” offering first-time buyers a 20 percent equity loan with a low deposit requirement to stimulate demand in the housing market. While this move boosted major housebuilders' shares by over 10 percent, experts remain cautious about its effectiveness given high interest rates and ongoing supply shortages.

Shares of major UK housebuilders rose sharply following the government’s announcement of a new version of the Help to Buy scheme aimed at supporting first-time homebuyers amid a housing market slowdown. Companies including Taylor Wimpey, Persimmon, Barratt, Redrow, and Crest Nicholson saw their shares increase by more than 10 percent on the news.

The revived initiative, titled “Your First Home,” was unveiled by Prime Minister Andy Burnham on Saturday. It targets first-time buyers purchasing new-build properties, requiring a minimum deposit of 2.5 percent and offering a 20 percent equity loan. This loan will come with an initial interest-free period, designed to ease the upfront financial burden for purchasers.

The original Help to Buy scheme, introduced in 2013 by a previous Conservative government, ran for ten years and helped many first-time buyers enter the housing market by providing mortgage guarantees and equity loans. However, the scheme faced criticism for focusing on stimulating demand rather than addressing the fundamental shortage of housing supply. Critics argued that it contributed to rising house prices while increasing profits for developers.

The current housing market conditions are challenging. High interest rates, rising costs, and cautious consumer sentiment have dampened builder activity and housing demand. According to government estimates, net additional dwellings in England decreased by 4.4 percent in the 2025-26 period, totaling 199,500 units—falling short of the government’s target of 1.5 million new homes over the current five-year parliamentary term.

Some industry observers expressed cautious optimism about the impact of the new scheme. RBC analyst Anthony Codling described the announcement as a significant positive catalyst for housebuilders. However, concerns remain regarding the scheme’s effectiveness, particularly in high-cost areas such as London. Paula Higgins, chief executive of the consumer group HomeOwners Alliance, noted that the previous iteration of Help to Buy was more successful in an environment with lower interest rates. She highlighted that the combination of stamp duty and elevated borrowing costs could diminish the scheme’s benefits for buyers, potentially limiting its ability to improve housing affordability.

Additionally, campaigners, estate agents, and mortgage brokers have called on the government to address the ongoing affordability crisis more comprehensively, emphasizing the need for supply-side measures alongside demand stimulus.

With housebuilder profits projected to decline by 12 percent this year, the government’s renewed focus on supporting first-time buyers through “Your First Home” marks a notable effort to reinvigorate the sector and help achieve housing delivery targets amid persistent market pressures.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.