In this article
The government has confirmed the property price caps for its new Your First Home Scheme, giving first-time buyers a clearer idea of which new-build homes could qualify when applications open in February 2027.
Published on 3 November 2026, the official list of property price caps sets a maximum purchase price for each local authority in England.
The limits range from £215,000 in North Lincolnshire to £650,000 in parts of London, reflecting the differences in property prices across the country.
For first-time buyers who are considering the scheme, the new figures provide a useful starting point for looking at properties and understanding how far their budget might stretch.
How Do the Your First Home Property Price Caps Work?
The property price cap is the maximum amount a home can cost to qualify for the Your First Home Scheme in a particular area.
Rather than having one price limit for an entire region, the government has set individual limits for local authorities. This means two neighbouring areas could have different maximum purchase prices.
For example, a first-time buyer looking in Manchester could purchase an eligible new-build property costing up to £355,000 through the scheme. In nearby Salford, the limit is £305,000, while Trafford has a cap of £285,000.
These figures aren’t mortgage borrowing limits. They’re the maximum property prices permitted under the scheme, so buyers will still need to establish how much they can afford based on their income, deposit and financial commitments.
A property also needs to be an eligible new-build home sold by a participating developer, rather than simply being priced below the local limit.
What Are the Your First Home Price Caps in Different Areas?
The newly published figures show considerable differences between cities and surrounding areas.
In Yorkshire and the Humber, the limit is £230,000 in Hull, £235,000 in Liverpool, £260,000 in Sheffield and £370,000 in York. Leeds has a maximum purchase price of £305,000.
Elsewhere, Birmingham has a cap of £315,000, Coventry £305,000 and Derby £290,000. Bristol has a higher limit of £325,000, while Cambridge is considerably higher at £505,000.
The differences become particularly noticeable when looking at neighbouring councils.
For example, Hull’s £230,000 cap is lower than the £265,000 limit in the East Riding of Yorkshire. Someone considering a new-build property on either side of that boundary would therefore be looking at different scheme limits.
Similarly, Bristol’s £325,000 cap compares with £385,000 in South Gloucestershire and £350,000 in North Somerset.
The figures reflect the government’s assessment of property prices in each local authority, rather than the amount a particular buyer should spend.
What Are the Your First Home Price Caps in London?
London has two main price limits under the scheme, with a maximum of £650,000 in inner London and £500,000 in outer London.
For example, Camden, Hackney, Westminster and Tower Hamlets have caps of £650,000, while Barnet, Croydon, Ealing and Hillingdon have limits of £500,000.
The higher limits recognise the cost of buying in London, although buyers will still need to meet the scheme’s household income restriction of £140,000 and qualify for a suitable mortgage.
The price cap doesn’t guarantee that someone will be able to borrow enough to purchase a property at that value.
How Much Deposit Would You Need With the New Price Caps?
One of the main features of the Your First Home Scheme is the ability to buy with a deposit as low as 2.5%, supported by a government equity loan covering 20% of the purchase price.
Using a £200,000 property as an example, a first-time buyer would need a minimum deposit of £5,000. The government equity loan would contribute £40,000, leaving £155,000 to be covered by a repayment mortgage.
For a £250,000 home, the minimum deposit increases to £6,250, with a £50,000 government equity loan and a £193,750 mortgage.
The government has also confirmed that buyers can contribute deposits of up to 15%, which could reduce the amount they need to borrow from their mortgage lender.
These examples show how the scheme could reduce the initial savings needed to purchase an eligible home. The actual purchase price will still need to fall within the relevant local limit and be affordable to the buyer.
Could Looking in a Nearby Area Give You More Choice?
The different local authority limits could be worth considering if you’re searching across more than one area.
Someone interested in purchasing a new-build home in Hull, for example, might also be looking at developments in the East Riding of Yorkshire, where the higher price cap could allow a wider range of properties to qualify.
Equally, a buyer searching in Manchester might consider properties in Salford or Trafford, depending on the type of home they’re looking for and their available budget.
A higher cap doesn’t necessarily mean there will be more affordable properties available. You’ll still need to compare actual new-build prices, along with the locations and developments participating in the scheme.
It may be worth checking which local authority a property falls within, particularly when looking at developments close to council boundaries.
When Can First-Time Buyers Use the Your First Home Scheme?
The government expects pre-registration to become available by the end of December 2026, with full applications opening in February 2027 and the first purchases taking place from April 2027.
The scheme is intended for first-time buyers purchasing an eligible new-build home in England who would otherwise struggle to buy.
Household income must be £110,000 or less outside London and £140,000 or less within London. Applicants will also need to qualify for a mortgage with a participating lender.
For anyone interested in applying, the confirmed price caps are a useful addition to the information already available.
You can check your area using the government’s full list of property price caps, then consider the purchase prices that may be affordable based on your deposit and borrowing circumstances.
Our Your First Home Scheme page explains how the equity loan works, the eligibility requirements and how our mortgage advisors can help you prepare for the scheme’s launch.
