The latest Budget announcements bring a number of changes that could impact both first-time buyers and homeowners. New details on the First Home Scheme, plans to replace the Lifetime ISA with a new First-Time Buyer ISA and changes to household energy costs could offer some welcome support for buyers. 

Here's a first look at what these changes could mean for you and your next move:

Your First Home Scheme

The Scheme is for first-time buyers in England who buy a new-build home from a participating developer. Buyers put down a 2.5% deposit, take out a 20% government equity loan and a mortgage for the remaining 77.5%. However, the Chancellor announced the maximum household income you can have to be eligible for this scheme is £110,000

• The equity loan will be interest-free for five years.
• Pre-registration and guidance are expected by the end of December 2026. Applications are expected to open in February 2027, with the first property sales expected in April 2027. Buyers cannot apply yet

Lifetime ISA to be replaced by a First Time Buyer ISA

The Chancellor confirmed plans to replace Lifetime ISAs with a new First Time Buyer ISA, which will replace the LISA for new accounts from April 2029. Unlike Lifetime ISAs, which can also be used to save for retirement, the new account will be aimed solely at first-time buyers.

Existing Lifetime ISA holders will be able to keep their accounts and continue using them under the existing rules, including for retirement.

Energy bills changes and help for low-income households

• £100 household energy payment: Around 20 million households in council tax bands A-D in England will receive a £100 payment this winter to help with rising energy bills. The Chancellor said it will be paid directly into bank accounts. 
• Electricity VAT cut extended: The cut to VAT on domestic electricity bills from 5% to zero which came into effect in October 2026 will now last until July 2027. It had been due to end in March 2027.
• Gas standing charges scrapped: Standing charges will be removed from household gas bills for around 23 million homes. These are fixed daily fees you pay even when you don’t use any gas. Instead, the costs will be added to gas unit rates. The government estimates that 60% of households with gas accounts could save an average of £45 a year.