More people are now eligible for Government support to buy their first home following the introduction of changes to the Department of Infrastructure’s shared equity purchase assistance schemes.
The changes, approved by Tynwald in July and now in effect, increase income thresholds under both the First Home Fixed and First Home Choice schemes, allowing a wider range of people to access help with home ownership.
The revised schemes also introduce a simpler and more predictable interest rate structure. In addition, participants in the First Home Choice Scheme will benefit from greater flexibility to reduce the Government’s equity share during the first five years of ownership.
Income thresholds under the schemes have increased across all categories to reflect changes in earnings and costs.
The First Home Fixed Scheme helps eligible buyers to purchase designated affordable homes at discounted prices and is aimed at households on lower incomes.
The First Home Choice Scheme allows eligible buyers to purchase homes on the open market and offers greater flexibility, together with higher income thresholds.
For the First Home Fixed Scheme, annual income thresholds have increased to:
- Single person – £40,000
- Couple without children – £52,000
- Single person or couple with one child – £58,000
- Single person or couple with two or more children – £64,000
Property price limits also increase, with maximum discounted purchase prices ranging from £180,000 to £222,000 depending on household size and property type.
The First Home Choice Scheme also sees increased annual income thresholds:
- Single person – £48,000
- Couple without children – £62,000
- Single person or couple with one child – £70,000
- Single person or couple with two or more children – £77,000
Both schemes now have a simpler and more predictable interest rate framework for new loans, with no interest payable during the first year, a fixed rate of 2.5% from years one to five and, after that, a rate set at 1% above the Bank of England Base Rate, capped at 5%. Under both schemes, applicants whose immigration status includes a condition of ‘no recourse to public funds’ are not eligible for assistance.
Tynwald also approved amendments to the Public Sector Housing (General Needs) (Allocation) Policy. These changes, which will come into effect on 1 October 2026, will introduce annual inflation-linked updates to income thresholds and provide social housing authorities with greater flexibility to respond to exceptional circumstances while ensuring housing need remains the primary consideration when allocating social housing.
