Access FS warns Your First Home scheme must include resale risk disclosures and mandatory independent advice as Budget confirms details on the 28th
Access Financial Services (Access FS) has urged the Government to strengthen buyer protections within its Your First Home scheme. The mortgage brokerage warns that restricting the scheme to new-build homes leaves first-time buyers exposed to financial risk.
Access FS supports the scheme’s aim of reducing the deposit barrier. It argues buyers could face significant difficulties without clear guidance on resale risk and equity loan repayment terms. The risk is sharpest for those who may need to move sooner than planned.
For brokers, that gap is a liability, particularly with clients who may overestimate what a Government equity loan protects them from.
Kerblist analysed HM Land Registry data for England and Wales and found 12% of new-build homes resold within three years sold below their original purchase price. That compares with 6.3% for comparable second-hand properties. Access FS says the data points to a structural risk brokers will need to address with clients.
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What does the Autumn Budget need to confirm for brokers advising on Your First Home?
Under Your First Home, eligible buyers in England can purchase new-build properties with a 2.5% deposit. A Government equity loan would cover 20% of the property’s value.
Full details of the scheme — including costs and implementation timetable — are being set out by Chancellor John Healey at the Autumn Budget on Wednesday 28 October. Until that announcement, brokers have been working without the income caps, property price limits and repayment terms they need to advise clients properly.
“Research shows that new-build properties resold within three years are more likely to sell for less than their original purchase price than comparable second-hand homes,” said Karl Wilkinson (pictured above), Access FS chief executive. “That doesn’t mean new builds are destined to lose value, or that the Government’s equity loan automatically increases the risk of negative equity. But it does underline why buyers need to understand the implications of the scheme before committing.”
Three things the Budget must deliver for brokers
Rising first-time buyer enquiries have brought growing complexity to broker pipelines, with independent advice increasingly critical as scheme options expand. Access FS believes the Budget must resolve three issues that will directly shape the advice brokers can give.
First, it is calling for the scheme to extend beyond new-build homes. Opening eligibility to the resale market would give brokers a broader range of options for clients, rather than funnelling cases toward developer-led stock.
Second, it wants clear, published information on how the equity loan interacts with the mortgage at sale or remortgage. That includes what happens when the interest-free period ends. Without that detail, brokers cannot give clients a reliable picture of their long-term costs.
Third, Access FS believes access to independent mortgage advice should be a clear part of how the scheme is delivered.
“The Government has an opportunity to help more people buy their first home. But the scheme needs to support informed decisions as well as access to finance,” Wilkinson said. “Buyers should have a clear understanding of both the immediate benefits and the longer-term commitments.”
Pressure mounts ahead of tomorrow’s Budget
Access FS is not alone in its concerns. SAM Conveyancing has separately urged the Treasury to open the scheme to the resale market before the Budget locks in a new-build-only model. Developer-led sales bring 28-day exchange deadlines, complex plot covenants and higher conveyancing costs — all of which narrow the advice brokers can give.
Rightmove analysis found the scheme could more than double the new-build homes within reach of the average solo first-time buyer in England. That scale of potential demand makes the unanswered questions more pressing, not less.
Brokers who cannot explain the equity loan’s repayment mechanics, early resale implications or the effect of falling values will struggle when pre-registration opens.
The Budget will settle the eligibility rules, price caps and income limits that make proper advice possible. Until it does, the scheme remains an outline. Brokers who use Wednesday’s announcement to update their client conversations will be ahead of the questions that follow.
