Last year’s Budget showed little in the way of help for first time buyers, but will 2026 be the year to finally get on to the property ladder? Ginetta Vedrickas hears from the experts
Sophie Horgan, Director of Midlands-based Horgan Homes, calls the Budget a “sticking plaster” which didn’t address issues holding back the UK economy. “I wanted to see clear action to prioritise the small housing sites and SME constructors who are the backbone of housebuilding in this country. Things like cutting red tape and affordable housing obligations around small sites of 20 homes or fewer would have made a huge difference.
“I heard little which will help first time buyers achieve their housing dreams and even less about creating the sort of Government-backed finance deals which would enable smaller builders to press ahead with projects with real confidence. We have heard plenty of talk from this Government about getting Britain building, but that simply won’t happen unless the army of SME builders is supported to create the homes we know people want. The fact we heard so little about how the Government might achieve that means not only is there no chance of building the 1.5m homes the Government has promised, but that generations of people now look unlikely to be able to follow their dream of owning their own home for years to come.”
Kevin Stevens, of E5 Living, currently building new homes in Lincolnshire, says that the Chancellor failed to deliver policies necessary for economic growth. “I had asked if the Government had the courage for change, we now know it doesn’t. The Budget reflects more muddled economic thinking and short-term political opportunism, neither of which is good for our country. I heard little in the way of action to help the hundreds of small and regional builders who are hanging on by their fingernails at the moment. There was no significant new action to clear more of the barriers which stand in the way of development and precious little help to build the skills and talent the construction industry so desperately needs.
“Where was the help for first time buyers to allow them to get on to the property ladder? We have our own scheme running on our King’s Park Village development at Grimsby, but surely the Government should be prioritising action too. Instead, we got a mansion tax and a series of wealth taxes just because the Chancellor needed to throw some red meat to her backbench Labour MPs. How that is supposed to help build liquidity in our housing market – as reform of Stamp Duty might have done – or grow our economy is anyone’s guess.
“The mansion tax will simply fuel an exodus of people out of this country who would otherwise be creating new jobs, employing local people and generating wealth. Blaming people for being successful is no recipe for a prosperous future. It is now painfully clear that the Government will miss its housing construction targets in spectacular style and that the Chancellor’s credibility has never been lower. Despite saying she is on the side of business, the chancellor has failed to listen to the experts in our industry who have set out some of the things she needed to do to get the UK building again. I fear we will pay a heavy price for her inability to listen.”
Looking ahead to 2026, Dan Wilson Craw, Deputy CE, Generation Rent, feels that buying a home, especially if you are single, is becoming impossible. “Homes are the foundations of our lives, but decades of rising house prices have left homeownership off-limits to single people in most of the country, and impossible in London if you don’t have family wealth. Things are easier for couples because two salaries let you borrow much more on a mortgage, but, even then, you need to sacrifice a large chunk of your disposable income to raise the deposit you need. Building more homes will slow the rise of rents and prices, reducing the time needed to save. But to really make a difference, the Government should look again at the advantages investors have, such as interest-only mortgages, that have allowed them to outbid first time buyers. Giving Metro Mayors the power to limit rent increases in cities like London would also help give renters some breathing space to start saving.”
Jennifer Cobley, Group Sales, Marketing & Customer Experience Director for Places for People, feels that confidence will be key in helping first time buyer make their move. “The market has slowed due to recent economic uncertainty, but with Government attention returning to housing and interest rates gradually easing, 2026 could be the right moment to take that important first step on to the property ladder. At Places for People, we understand how vital a healthy, functioning market is. We continue to deliver affordable homes, including Shared Ownership properties, because they offer a realistic and secure route on to the property ladder, particularly when traditional affordability remains a challenge. Lower deposits, reduced monthly costs, and the option to buy more shares over time make Shared Ownership an accessible pathway for many. Rising build costs and evolving regulations will continue to shape the sector, but our commitment remains firm: to provide high-quality, future-proofed and affordable homes in the places people want to live.”
Sheetal Smith, Sales & Marketing Director at Pennyfarthing Homes, was hoping for the return of a Help to Buy-style initiative. “While we would certainly welcome it, it was clear it wasn’t going to reappear at this Budget. That said, there are some positives. Increased support for backing apprentices through small businesses and SMEs is encouraging and will help strengthen the construction workforce for the future. Investment in high streets, infrastructure and local schools is also welcome. Strong local amenities create thriving communities where the new home developments we build can succeed. Anything that supports our towns and villages is a step in the right direction.
“However, the Budget still falls short on measures that would meaningfully increase housing supply. The planning system remains slow and under-resourced, and without targeted support for first time buyers and developers alike, the industry simply cannot deliver the homes the country urgently needs. As we head into 2026, it’s clear that first time buyers are going to need more support, not less. Buying costs continue to climb, mortgage affordability remains tight, and the Bank of Mum and Dad simply won’t be able to stretch as it once did. The generous family help that propped up so many purchases over the last decade is naturally fading, and it seems there are many younger buyers who are feeling that gap.
“This year’s Budget didn’t offer the support that many of us were hoping for. Despite the noise around homeownership, there was very little in the way of concrete help for those trying to get on to the ladder for the first time. Without targeted support, the barrier remains high, and that’s exactly why I think that buyers will increasingly turn to developers and lenders for practical and structured support. At Pennyfarthing Homes, we’ve already widened our offering from key-worker packages to First Homes and, where possible, 5% gifted deposits. But industry wide, it’s clear that more is needed. Across the board, all housebuilders have been calling for help with a shared equity model that reflects today’s affordability pressures. If 2026 is going to be a year where first time buyers can still make that first step on to the ladder, it will be because of a collaborative approach, where the housebuilding sector and the Government work together to create clearer, more accessible routes into homeownership.”
Paula Higgins, CEO of property advice website HomeOwners Alliance, is more optimistic. “Our research showed that 42% of aspiring homeowners think now is a bad time to buy, but we disagree. The outlook for 2026 is one of cautious optimism, although first time buyers still face a battle. There are signs of improvement. Mortgage rates are drifting down, and a price war has pushed some fixed deals below 3.6%, levels unseen since before the 2022 rate spike. We expect interest rates to keep falling into 2026. Crucially, mortgage affordability tests have eased, with lenders relaxing stress-test rates and allowing higher income multiples, meaning some first time buyers can now borrow more on the same income. But the Budget was still a missed opportunity. With rents at record highs, saving for a deposit remains the biggest barrier. We needed bold action: reform of the Lifetime ISA penalty and incentives to build affordable homes. The Government’s plan to consult on a new ISA is welcome, but it must scrap the 6.25% penalty, keep the bonus and raise the price cap. We think 2026 could be a better year, and for clear, practical guidance, visit the HomeOwners Alliance website for everything first time buyers need to know, including the latest mortgage rates.”
Richard Donnell, Executive Director at Zoopla, says, “The recent Budget introduced only modest tax reforms, targeting the top 0.5% of homes. It’s a significant relief for the 200,000 homes in the £500,000 to £2,000,000 bracket that are not facing additional property taxes, and we expect this to boost market activity at the beginning of 2026. The mainstream market, where first time buyers operate, experienced a strong 2025 with an increase in sales, primarily driven by stabilised mortgage rates. First time buyers are the largest buyer group – accounting for almost two in five sales – and they have seen a greater choice of homes and improved mortgage affordability over the past six months. Consequently, FTBs outside southern England are seeking properties at prices 5-10% higher than they were a year ago.
“Overall, we anticipate a rebound in market activity in 2026, as those who postponed moving decisions due to Budget speculation return. We expect a steady year ahead, with modest house price inflation and sales remaining around 1.15 million, consistent with 2025. Mortgage lending is expected to stay competitive, and first time buyers should prioritise understanding their affordability as the first step in their homebuying journey.”
Emmanuel Asafo-Agyei, Assistant Relationship Manager Mortgage Broker at VM Finance Ltd, found that last year brought innovation and flexibility for first time buyers; £5,000 and 0% deposit options are now available, and he is optimistic about 2026. “The problem of saving for a deposit in a high cost of living environment is now being recognised. Traditionally a lower deposit would mean that a first time buyer could not buy because the borrowing amount available to them was not enough and/or property prices were so high that finding 10% or even 5% of £500,000 purchase prices was a big ask for some. I believe that the market is now very much focusing on the problems faced by first time buyers and is actively creating solutions. Some would say if you looked hard enough, you would see it is a buyers’ market and thus for first time buyers now is probably the best time in terms of funding options that there has been since the Stamp Duty holiday of 2021. Speaking of which, a similar provision for first time buyers in the Budget would have been a real positive for first time buyers that I would have liked to have seen.”
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
