Households earning more than £90,000 could be excluded from the Government’s new Your First Home scheme, according to reports.
The Times reports that ministers are considering a £90,000 household income cap outside London, rising to £110,000 in the capital.
The proposed limits would restrict access to the scheme for some higher-earning first-time buyers, including dual-income households which may still struggle to raise a deposit.
However, the thresholds have yet to be confirmed and could change before the Budget on 28 October, when full details of Your First Home are expected.
INCOME LIMITS
The new scheme is designed to help first-time buyers purchase new-build homes and is expected to require deposits of as little as 2.5%, supported by a Government equity loan.
Unlike the original Help to Buy equity loan scheme, eligibility is expected to be restricted according to household income, alongside regional property price caps.
The Times reports that the proposed £90,000 threshold could mean a household containing a teacher and nurse is ineligible outside London if their combined earnings exceed the limit.
Your First Home was announced by Prime Minister Andy Burnham in September as part of the Government’s efforts to improve access to home ownership.
The scheme is expected to launch later this year, although detailed eligibility criteria have yet to be published.
The Government tells The Times that the reported income thresholds are speculation, with final details due to be set out at the Budget.
