Your First Home Scheme 2027: Buying in Richmond upon Thames with a 2.5% Deposit
Could buying your first home in Richmond upon Thames become more achievable? A new government scheme promises to help eligible first-time buyers purchase a new-build property with a deposit of just 2.5%.
For many aspiring homeowners across Richmond, Hampton, Teddington and Twickenham, saving a deposit remains one of the greatest challenges to getting onto the property ladder.
With property prices across the London Borough of Richmond upon Thames considerably higher than the national average, even a relatively modest deposit can represent years of saving.
Announced as part of the government's Autumn Budget on 28 October 2026, the new Your First Home scheme combines a smaller deposit with a government equity loan and a repayment mortgage.
At Dwelling & Manor, independent estate agents covering Richmond upon Thames, we have explored how the scheme works, who may qualify and what it could mean for first-time buyers looking for a home in our local area.
What is the Your First Home scheme and how does it work?
Your First Home is a new government-backed equity loan scheme intended to make purchasing a new-build property more accessible to eligible first-time buyers in England.
Instead of relying entirely on personal savings and a conventional mortgage, qualifying buyers will be able to combine three sources of funding:
- A personal deposit: at least 2.5% of the purchase price.
- A government equity loan: worth 20% of the purchase price.
- A repayment mortgage: provided by a participating mortgage lender to cover the remaining balance.
With the minimum deposit, the mortgage would represent 77.5% of the purchase price. Buyers will own their property from completion; the government will not be their joint owner or landlord.
The scheme is intended for those who can afford mortgage repayments but may struggle to save a larger deposit or purchase without assistance.
However, mortgage affordability and credit checks will still apply. A smaller deposit does not guarantee that a lender will approve an application.
How much deposit would you need for a £450,000 home in Richmond Borough?
To illustrate how the scheme could work locally, imagine purchasing an eligible new-build apartment in the London Borough of Richmond upon Thames for £450,000.
Using the minimum 2.5% deposit, the purchase could be funded as follows:
| Funding source | Amount |
|---|---|
| Your deposit (2.5%) | £11,250 |
| Government equity loan (20%) | £90,000 |
| Repayment mortgage (77.5%) | £348,750 |
| Property purchase price | £450,000 |
By comparison, purchasing the same property with a conventional 95% mortgage would typically require a 5% deposit of £22,500, alongside a £427,500 mortgage.
Under Your First Home, the initial deposit would be £11,250 lower and the mortgage smaller. However, the buyer would also need to account for the government's equity loan and its eventual repayment.
These figures are illustrations rather than mortgage offers. Legal fees, mortgage fees, tax and other purchase costs are additional.
A smaller deposit could make the first step easier. Understanding the longer-term costs is equally important.
Who is eligible for the Your First Home scheme in London?
Under the government's current guidance, the scheme is intended for first-time buyers who would struggle to purchase without assistance.
Applicants will normally need to meet the following conditions:
- Be a qualifying first-time buyer.
- Purchase an eligible new-build property in England from a participating developer.
- Use the property as their main residence.
- Have an annual household income of no more than £140,000 in London.
- Purchase a property within the relevant local authority price cap.
- Obtain a suitable mortgage from a participating lender and satisfy affordability and credit checks.
The minimum deposit is 2.5%, with the government setting a maximum deposit of 15% under the scheme.
Crucially, the scheme is intended for qualifying new-build homes. Existing properties being resold on the open market will not automatically qualify, even if they are relatively modern.
The government is expected to publish further operational guidance, including the full eligibility criteria and details of participating developers and mortgage lenders, before applications open.
Will the Your First Home scheme be available in Richmond upon Thames?
The scheme is intended to operate across England, including London. This means eligible first-time buyers looking in Richmond, Hampton, Teddington and Twickenham may be able to benefit.
There is, however, an important local consideration: property price limits.
The London Borough of Richmond upon Thames is classified as Outer London under the London Plan 2021.
The government has published a £500,000 price cap for Outer London under Your First Home, while the full local authority schedule and operational rules are being finalised.
This matters considerably in a borough where property prices are amongst the highest in London.
How do Richmond upon Thames property prices compare with the scheme?
According to the Office for National Statistics, the average property price in Richmond upon Thames was approximately £814,000 in August 2026.
The average price paid by first-time buyers was approximately £644,000, while flats and maisonettes averaged approximately £493,000.
Sources: UK Government, Your First Home and ONS, Housing prices in Richmond upon Thames. ONS figures are provisional August 2026 averages for the wider housing market, not specifically eligible new-build properties.
These figures demonstrate both the potential opportunity and the limitations of the scheme.
Some smaller new-build apartments may fall within the published price limit. However, larger properties, more expensive developments and many established homes will sit above it.
Even where a property is priced below £500,000, it will only qualify if it meets the relevant scheme conditions and the developer is participating.
Buying your first home in Richmond, Hampton, Teddington or Twickenham
Although these four locations sit within the same London borough, their property markets can differ considerably.
From established Victorian terraces and period conversions to purpose-built flats and contemporary new-build developments, each area offers different choices for first-time buyers.
The availability of properties under Your First Home will depend on which developers participate, the types of homes released and their individual purchase prices.
First-time buyers in Richmond
Richmond is one of southwest London's most established residential locations, celebrated for Richmond Green, Richmond Park, its riverside setting and excellent transport connections.
Property ranges from Georgian townhouses and Victorian family homes to mansion flats, period conversions and contemporary apartments.
For first-time buyers in Richmond, affordability is often the principal challenge. Qualifying new-build apartments below the scheme's price cap could offer an alternative route to ownership, where suitable participating developments exist.
Buyers should consider leasehold terms, service charges, energy efficiency, transport links and the total monthly cost of ownership, rather than the deposit alone.
First-time buyers in Hampton
Hampton offers an appealing combination of village character, attractive residential streets and access to some of southwest London's most beautiful green spaces.
Hampton Village and Hampton Hill are particularly well known for period cottages, Victorian terraces, family homes and their proximity to Bushy Park.
Although much of Hampton's housing stock is established property, buyers may also encounter smaller modern developments and newly constructed homes across TW12.
Where these are offered by a participating developer and meet the relevant price limits, Your First Home could provide an additional opportunity for buyers hoping to put down roots locally.
Comparing Hampton properties should include travel connections, maintenance costs, property tenure and whether a particular home qualifies under the scheme.
First-time buyers in Teddington
Teddington remains a popular choice for buyers seeking a neighbourhood atmosphere with convenient access to central London.
Its independent shops, Broad Street, Teddington Lock and proximity to Bushy Park contribute to the area's strong residential appeal.
The local market includes Victorian and Edwardian houses, characterful conversions, purpose-built apartments and selected new developments.
For first-time buyers searching for a flat or new-build property in Teddington, the scheme could potentially reduce the amount of cash required upfront.
However, buyers will need to check carefully whether individual developments are participating and whether the properties meet the applicable purchase price requirements.
First-time buyers in Twickenham
Twickenham offers a diverse property market, ranging from characterful period houses and converted flats to modern apartments and contemporary residential developments.
Areas around Twickenham Station, Twickenham Green, Strawberry Hill and St Margarets appeal to buyers with different budgets and priorities.
The variety of apartment stock can make Twickenham an interesting area to explore for first-time buyers, particularly those seeking convenient rail connections and a lively town-centre setting.
If qualifying new-build homes are released within the scheme's price cap, Your First Home could help some buyers purchase with a smaller initial deposit.
Buyers should assess service charges, lease lengths, building maintenance commitments and the longer-term implications of the equity loan.
Across Richmond, Hampton, Teddington and Twickenham, understanding the individual property remains just as important as understanding the scheme itself. Not every new-build property will qualify, and eligibility should be confirmed before making a financial commitment.
What happens to the government equity loan after five years?
One of the scheme's central features is that the government equity loan will be interest-free for the first five years.
This could reduce the initial monthly costs of purchasing a property when compared with a larger conventional mortgage.
However, interest will begin to apply after the introductory period:
| Period | Equity loan interest |
|---|---|
| Years 1–5 | 0% |
| Year 6 | 1.5% |
| From year 7 | 3% |
Using the earlier example of a £450,000 home with a £90,000 government equity loan, the interest could be approximately £112.50 per month in year six and £225 per month from year seven, assuming the original equity loan remains outstanding.
These amounts are separate from the mortgage repayments and do not reduce the outstanding equity loan.
What happens if the property's value changes?
Unlike a conventional fixed-sum loan, the amount repayable under Your First Home is linked to the value of the property.
If the government provides 20% of the purchase price, the amount normally repayable will be 20% of the property's value when the equity loan is repaid.
For example, imagine buying an eligible £450,000 home with a £90,000 equity loan.
- If the property increases in value to £500,000, a 20% equity share would amount to £100,000.
- If the property decreases in value to £400,000, a 20% equity share would amount to £80,000.
The government therefore participates in both increases and decreases in the value of the property.
The equity loan will normally be repaid when the home is sold, although buyers will also be able to repay some or all of it earlier, subject to the scheme's rules.
Further guidance will explain the independent valuation process, any applicable fees and how repayment works when selling or remortgaging.
When does the Your First Home scheme start in 2027?
The government has outlined the expected introduction of the scheme in stages.
Customer pre-registration and further guidance are expected by the end of December. Initial developer registration is also planned.
The first customer applications are expected to open.
The first property purchases under the scheme are anticipated.
Pre-registration is not expected to commit applicants to a purchase. It will provide further information about eligibility and the price caps applying in their area.
Applications are not yet open, and buyers should check the government's official Your First Home guidance for updates.
What should first-time buyers in Richmond Borough do before applying?
Even with a smaller deposit requirement, purchasing a property involves considerable financial and legal commitments.
If you are hoping to buy your first home in Richmond, Hampton, Teddington or Twickenham during 2027, it may be worth preparing in advance.
- Understand your borrowing capacity. Speak with an independent mortgage adviser about affordability, existing commitments and likely lending requirements.
- Keep saving beyond the minimum deposit. Budget for conveyancing, mortgage costs, moving expenses and a financial buffer.
- Research the local market. Compare property types, locations, asking prices and ongoing ownership costs.
- Review new-build ownership costs. Consider leasehold terms, service charges, estate charges and potential future expenditure.
- Plan for the equity loan. Consider interest charges after five years, future remortgaging and the amount repayable if the property increases in value.
- Confirm the scheme's final rules. Check eligibility, developer participation and the applicable local price cap before making a commitment.
Remember that Your First Home is not necessarily the right route for every buyer. Existing homes, different mortgage products and other first-time buyer support schemes may also be worth exploring.
At Dwelling & Manor, our approach is to help buyers make informed decisions, combining an understanding of the local Richmond upon Thames property market with clear, personal advice.
Could Your First Home help buyers onto the property ladder in Richmond?
For first-time buyers who have been saving towards their first property, Your First Home represents a potentially useful development.
By reducing the minimum deposit to 2.5% and combining a conventional mortgage with government equity support, the scheme could make some qualifying new-build homes more accessible.
Yet Richmond upon Thames presents a particular challenge: its comparatively high house prices mean many properties will fall outside the scheme's price limits.
The eventual impact in Richmond, Hampton, Teddington and Twickenham will depend on the availability of eligible developments, their pricing and the mortgage products made available by participating lenders.
For anyone considering their first purchase, the most sensible starting point remains understanding their finances, researching their preferred neighbourhood and exploring properties that genuinely suit their needs.
Your First Home scheme: frequently asked questions
Can I buy a home in Richmond upon Thames with a 2.5% deposit?
Potentially, yes. Under the new Your First Home scheme, eligible first-time buyers could purchase a qualifying new-build property using a minimum 2.5% deposit, a 20% government equity loan and a repayment mortgage. The property must fall within the relevant local price cap, the developer must participate, and the buyer must satisfy the scheme and mortgage eligibility requirements.
What is the Your First Home price cap in Richmond upon Thames?
Richmond upon Thames is classified as Outer London under the London Plan. The government has published a £500,000 Outer London price cap for Your First Home. Buyers should check the final local authority guidance before applying.
Is Your First Home available in Hampton, Teddington and Twickenham?
The scheme is intended to operate across England, including the London Borough of Richmond upon Thames. This means eligible purchases could potentially take place in Hampton, Teddington and Twickenham. However, suitable properties must be offered by participating developers and meet all scheme requirements.
How much deposit would I need for a £450,000 new-build flat?
A minimum 2.5% deposit on a £450,000 property is £11,250. Under Your First Home, this could be combined with a £90,000 government equity loan and a £348,750 repayment mortgage. Other purchase costs would be additional.
Can I use Your First Home to buy an existing flat?
No. Your First Home is intended for eligible new-build homes sold by participating developers. Existing resale properties do not qualify simply because their asking price falls below the scheme's price cap.
Is Your First Home the same as the First Homes scheme?
No. They are different government schemes. Your First Home uses a 20% government equity loan alongside a mortgage and deposit. The separate First Homes scheme offers qualifying purchasers properties at a discount against market value, subject to different rules.
When can first-time buyers apply for Your First Home?
Pre-registration is expected by the end of December 2026, with full applications anticipated from February 2027. The first sales under the scheme are expected from April 2027. Dates and operational details should be checked against the latest government guidance.
What happens if I sell my home after using the scheme?
The government equity loan will normally need to be repaid when the property is sold. The amount will generally reflect the same percentage of the property's current value as the original loan. Therefore, the amount repayable could increase or decrease.
Research & official sources
UK Government — Your First Home, 28 October 2026 · HM Treasury — Budget 2026 · ONS — Richmond upon Thames housing prices · London Plan — Inner and Outer London Boroughs · First Homes — separate government scheme .
Information correct as of 29 October 2026. Your First Home is a forthcoming government scheme. Full eligibility rules, participating developers, lenders and operational guidance may change before launch. Property market figures are provisional. This article provides general information and does not constitute mortgage, legal or financial advice. Independent professional advice should be sought before purchasing.
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