Is 'Help to Buy 2.0' Back? A London New Build with a 2.5% Deposit – What Can £400k or £500k Buy?

The UK Government has announced a new scheme for first-time buyers: Your First Home.

Here is what we know so far:

🏠 First-time buyers only, in England

💰 Minimum deposit of 2.5%

🏦 A 20% government equity loan, interest-free for an initial period

🏗️ For new-build homes from developers taking part in the scheme

It is hard not to think of the old Help to Buy scheme, which closed in 2023. Under that scheme, the London property price cap was £600,000.

For London buyers, however, the most important number has not been announced yet:

👉 What will the property price cap be?

The Government has said price caps will be set locally, alongside a household income cap. Full details are due in the Autumn Budget on 28 October.

The gap between London and the rest of the country is significant. According to the latest HM Land Registry data, the average price paid by a first-time buyer in London is around £467,000 – almost double the average for England (around £246,000). That is why a cap of £400k versus £500k would make a real difference to what London buyers can choose from.

With a 2.5% deposit, a £400,000 new build would need a deposit of about £10,000, and a £500,000 home about £12,500. The rest would be covered by the government loan (20%) and a mortgage (77.5%).

So we have done some homework in advance, based on current market prices:

If the cap is £400k or £500k, what new-build options are there in London today?

Postcode	Developer	Around £400k	Around £500k
UB3	Barratt	1-bed / small 2-bed	2-bed
HA1	Barratt	1-bed / small 2-bed	2-bed
HA9	Barratt	—	1-bed / small 2-bed
NW9	Barratt／Redrow	1-bed	1-bed
W3	Barratt	—	1-bed
TW3	Hill	1-bed	2-bed
RM9	Hill	1-bed	2-bed / some 3-bed
TW8	Hill	1-bed	1-bed
SE3	Berkeley	1-bed	1-bed / some 2-bed
E14	Berkeley	—	1-bed
E2	Berkeley	—	1-bed
SE28	Berkeley	1-bed	1-bed / 2-bed
HA9	Arada London	—	1-bed
TW1	London Square	—	Compact 1-bed
E16	Mount Anvil	—	Compact 1-bed
SW11	Mount Anvil	—	Compact 1-bed

From one-bedroom homes at around £400k to two-bedroom homes at around £500k – and even some three-bedroom homes in certain areas – there are still options on the market.

⚠️ Please note:

The table above is a scenario analysis based on current market prices only. It does not mean the developers or developments listed have confirmed they will take part in Your First Home.

The final property price cap, income cap, participating developers and schemes, and full terms are all subject to the Government's official announcement.

But if you are a first-time buyer with a budget of around £400k–£500k – especially if the deposit has been holding you back – now is a good time to start preparing.

SJW UK Properties has already prepared a selection of suitable homes for first-time buyers in this position.

To find out which developments sit behind the postcodes above, along with actual prices and layouts, message us, add us on WhatsApp (+44 7707807296) or email info@sjwukproperties.com for a free consultation.

SJW UK Properties – helping you find your home in the UK.

Sources: UK Government (GOV.UK) announcement, 26 September 2026; UK House Price Index, HM Land Registry (July 2026 data). This article is for general information only and does not constitute investment, legal or financial advice. Scheme details are subject to the UK Government's official announcement.

SJW UK Properties (legal name SJW UK Property Investment Ltd) was founded in 2015 and is headquartered in the City of London. Specialising in UK residential property and serving Chinese-speaking clients worldwide, our core services include new-build sales, residential sales and purchases, lettings and property management, and prime London residential sales, covering London and Cambridge.