Industry welcomes “Your First Home” scheme

Prime Minister Andy Burnham’s announcement of the Your First Home scheme has been welcomed by builders merchants and suppliers, many of whom have been campaigning for stimulus for the housebuilding market since the general election.

The Builders Merchants Federation (BMF) says the scheme will provide a welcome boost for the building materials sector, where the fall in the number of new homes being built over the last four years has weighed heavily on demand.

For some, however, the stimulus package has arrived too late. Within the last 12 months, the BMF has seen 18 of its members go out of business, resulting in the loss of 1,197 jobs.

The trade association has said it will be looking closely at the full details of the scheme, including impacts on Scotland and Wales, when specifics are announced by Chancellor John Healey in the Budget next month.

John Newcomb, BMF CEO comments: “The BMF has pressed for a stimulant for first-time buyers to be introduced, and it’s good to see that the Government is finally listening.

“Construction is a vital element of the UK economy, and one that has a massive impact on the nation’s financial position.

“We wait to hear about the exact details of this scheme, but it’s been clear that for too long house building has been stagnant, and help is needed to rebuild confidence.”

BMF manufacturing members are poised to act on any signs of an uptick in housebuilding, having allocated nearly £1.2 billion up to 2029, to expand capacity and capability across factories, production lines, and new processes to produce the materials and products that would support the government’s housing ambitions.

John Carter, CEO of STARK UK, adds; “We’re delighted to see Burnham and his Government taking this positive step to support new home buyers and to get building and construction back on its feet.

“It’s a real win for the industry, and for everyone who has backed our Let’s Get Britain Building NOW campaign. We have been calling for targeted support to help first-time buyers onto the ladder, and Government has listened.

“Your First Home will unlock demand, give housebuilders the confidence to bring forward new sites, and send a boost right through the supply chain, from skilled trades and merchants to manufacturers and local businesses.”

According to National Buying Group (NBG) managing director Mark Hughes, the building materials sector has been hampered by a lack of incentive for housebuilders since the government’s Help to Buy scheme closed in 2023. He explains; “Your First Home represents the first tangible support new buyers have received from the government in years, and we’re already seeing a boost in the building materials sector as a consequence, with a number of building material Suppliers reporting a jump in share price.”

Housing affordability has been a significant challenge for prospective buyers, a demographic intrinsically linked to demand for the construction of new homes.

Hughes continues: “This new scheme will help the housebuilding sector to grow and will hopefully stabilise some of the inconsistency felt by Suppliers that has become the norm in the last several years.

“Our network of independent merchant Partners will be working closely with our Suppliers to ensure all parties are well-placed to capitalise on every opportunity a revitalised housebuilding sector creates.”