What first-time buyers pay in Birmingham

First-time buyers in Birmingham paid an average of 212,000 pounds for a home in July, up 2.7 per cent on a year earlier, according to the Office for National Statistics. A new Government scheme announced this weekend could make it easier for some of them to get on the ladder.

How much you need

With a typical 10 per cent deposit, a first-time buyer paying the average price would need around 21,200 pounds, plus money for legal fees and surveys. First-time buyers in England pay no stamp duty on homes up to 300,000 pounds, which covers most homes in Birmingham.

The Your First Home scheme

Under the Your First Home scheme, announced on Saturday, first-time buyers in England could buy a new-build home with a deposit of just 2.5 per cent, backed by a Government equity loan worth 20 per cent of the property's value. The loan would have an initial interest-free period.

The scheme is expected to include caps on income and local property prices. Full details are due in the Budget next month, and pre-registration is expected to open by the end of 2026. It will only apply to new-build homes from developers who sign up.

New homes in Birmingham

Birmingham has a large pipeline of new homes planned, including city centre apartment blocks, the regeneration of Ladywood and Druids Heath, and new homes in Perry Barr, built as part of the regeneration that followed the 2022 Commonwealth Games.

Other help

Buyers can also look at shared ownership, where they buy a share of a home and pay rent on the rest, and at the Lifetime ISA, which adds a 25 per cent Government bonus to savings for a first home worth up to 450,000 pounds.

A word of caution

Advisers warn that buying with a very small deposit leaves little protection if prices fall. Buyers should make sure they can afford repayments if interest rates rise, and seek independent advice before committing.