The Conservatives have unveiled plans to offer first-time buyers a £5,000 National Insurance rebate when they start their first full-time job, positioning the policy as part of a wider effort to support young people onto the housing ladder.
The “first job bonus” would be funded through £23 billion of planned welfare savings, according to proposals outlined at the Conservative Party Conference.
The rebate could be used towards a home deposit or long-term savings, with the government arguing it would reward work and promote financial independence.
Party sources said the measure would sit alongside commitments to restore the two-child benefit cap, tighten restrictions on welfare access for migrants, and reduce foreign aid spending, as part of a broader drive for fiscal discipline.
AFFORDABILITY CRISIS
The announcement comes amid mounting pressure on political parties to address the affordability crisis facing first-time buyers, particularly in London and the South East where average deposits now exceed £70,000.
Announcing the policy, Shadow Chancellor Mel Stride (main picture) said the Conservatives wanted to “help young people buy a home, build a family, and save for the future.”
Nathan Emerson, Chief Executive at Propertymark, says: “Any support aimed at helping young people onto the housing ladder is welcome, particularly in the face of high deposit requirements and rising living costs.
“A £5,000 rebate could provide a meaningful boost toward a first home, especially for those without access to family financial support.
“However, this policy must be seen in the wider context. Without addressing the underlying issues of housing supply, affordability, and wage stagnation, incentives like these risk being a short-term fix rather than a long-term solution.
“The focus must be on ensuring that such measures are backed by substantial investment in affordable housing, planning reform, and a more stable economic outlook for young people entering the workforce.”
STAMP DUTY BETTER BOOST
James Nightingall, Founder of HomeFinder AI, says: “In theory, a £5k National Insurance rebate is a step in the right direction but is unlikely to have a significant impact on London’s first-time buyers who still face some of the UK’s highest property prices.
“To really help people get on the property ladder, it would be more effective to reconsider the recently adjusted stamp duty thresholds or introduce other initiatives that boost buyer confidence.”
NOT MEANINGFUL
Nick Mendes, Mortgage Technical Manager at John Charcol, says: “A £5,000 rebate would be welcome, but it is not transformative.
“In most regions, it would comfortably cover conveyancing, valuation and moving costs, with a little left for the deposit.
“In London and much of the South East, where deposits are many multiples of that figure, it is unlikely to change behaviour in a meaningful way.”
