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What does a Your First Home new build cost each month, beyond the mortgage?

Short answer

GOV.UK's Your First Home example for a £300,000 new build shows £1,248 a month in years 1 to 5, £1,323 in year 6 and £1,398 from year 7, when interest on the 20% equity loan starts. It covers the mortgage and the loan and nothing else: council tax, energy, water, broadband, the TV Licence, insurance, maintenance and any service or estate charges come on top.

On England's 2026-27 averages, council tax for a band A to D home, typical energy use, water and the TV Licence add about £345 to £411 a month (our arithmetic). Before you reserve a plot, ask the developer for the likely council tax band, the energy rating and the estate's yearly charges.

Updated

  • £1,248

    GOV.UK's monthly example on a £300,000 home, years 1 to 5

  • 3%

    Equity loan interest from year 7, after 1.5% in year 6

  • £345 to £411

    Council tax, energy, water and TV Licence a month on 2026-27 averages

See the bills for your new address

Pick your new address to see its council tax band and charge, its water company, who supplies the energy, and broadband deals, in one list.

You pick your exact address on the next screen. Nothing is priced before that.

England, Scotland and Wales. The water figure is the company's average bill.

Your First Home is the government's new 20% equity loan for first-time buyers of new-build homes in England, confirmed in the Budget on 28 October 2026. GOV.UK's example shows the mortgage and the loan's interest. This guide adds the bills that come with the home, why a new build's council tax arrives late, what the loan costs from year 6, and what to check before you reserve a plot.

What a Your First Home new build costs each month

CostA monthWhere the figure comes from
Mortgage and equity loan interest£1,248 in years 1 to 5Then £1,323 in year 6 and £1,398 from year 7, on GOV.UK's example: a £300,000 home, a 2.5% deposit, a 20% loan and a 30-year mortgage at 5%.
Council tax£132.89 to £199.33Bands A to D on England's average Band D of £2,392 for 2026-27, over 12 months. Councils usually bill in 10 payments.
Energy£143.58Ofgem's cap for typical use, paid by Direct Debit, 1 October to 31 December 2026. The home's EPC gives its own estimate.
Water£53.25The average water and sewerage bill in England and Wales for 2026-27. A new house has a meter, so yours follows your use.
TV Licence£15£180 a year, if you watch live TV or use BBC iPlayer.
BroadbandDepends on the providerCheck which providers use the network built for the development.
Insurance and maintenanceGet quotesNot in GOV.UK's example, which names both as costs to consider.
Service or estate chargesAsk the developerNot in GOV.UK's example. Get the yearly charge in writing before you reserve.

What does the Your First Home example include, and what does it leave out?

Only the mortgage and the equity loan's interest. Every household bill comes on top.

  • GOV.UK's example is a £300,000 new build bought with a £7,500 deposit (2.5%), a £60,000 government equity loan (20%) and a £232,500 repayment mortgage over 30 years at 5%.
  • On those assumptions it shows £1,248 a month in years 1 to 5, £1,323 in year 6 and £1,398 from year 7, against £1,530 a month for a standard 95% mortgage on the same home.
  • GOV.UK calls it an illustration, not a mortgage quote, and says it does not include mortgage fees, insurance, council tax, service charges, estate charges or maintenance.
  • Its list of things to consider before you apply adds legal fees, the cost of selling or remortgaging later, and whether you could afford higher mortgage rates.
  • Energy, water, broadband and the TV Licence are missing too: the example covers the mortgage and the loan only.
Sources (1)

How much do the household bills add each month on average?

About £345 to £411 a month on England's 2026-27 averages, for a band A to D home with typical energy use (Taupia's arithmetic).

  • £132.89 to £199.33

    Council tax a month, bands A to D

  • £143.58

    Energy a month, typical use

  • £53.25

    Water a month, average bill

  • £15

    TV Licence a month

  • £345 to £411

    The four together, a month

  • Council tax: England's average Band D charge for 2026-27 is £2,392, including parish precepts (MHCLG). By law bands A, B and C pay six, seven and eight ninths of Band D, so on that average a year costs £1,594.67, £1,860.44 and £2,126.22. Over 12 months that is £132.89 to £199.33 a month for bands A to D (Taupia's arithmetic).
  • Councils usually split the year into 10 monthly payments, so each payment is higher; GOV.UK says they can spread it over 12 instead.
  • Energy: Ofgem's price cap for 1 October to 31 December 2026 works out at £1,723 a year for typical use paid by Direct Debit, or £1,935 on the previous consumption basis that Taupia uses for like-for-like comparisons. £1,723 is £143.58 a month (Taupia's arithmetic). The cap limits unit rates and standing charges, not the bill, and a new build's use can differ a lot from the typical figure.
  • Water: the average combined water and sewerage bill in England and Wales for 2026-27 is £639, or £53.25 a month (Water UK, through Discover Water).
  • TV Licence: £180 a year, or £15 a month, if you watch live TV or use BBC iPlayer (GOV.UK).
  • Added together, that is about £345 to £411 a month before broadband, insurance and any service or estate charges. On GOV.UK's example, that makes about £1,593 to £1,659 a month in years 1 to 5, and £1,743 to £1,809 from year 7 (Taupia's arithmetic).
Sources (10)

Which council tax band will a new build be in, and when does the bill come?

The Valuation Office sets the band after the home is built, so the first bill can come late and backdated.

  • Bands in England rest on what a home could have sold for on 1 April 1991. For a home built since, the Valuation Office first looks at sales of similar homes that were new around then, then at sales of similar-sized homes in the area, and failing those at the bands already given to similar properties.
  • A plot you reserve has no band yet. GOV.UK's band search covers homes already on the list, so the bands of finished homes of the same type on the development or nearby are a guide, not a promise.
  • If the home you move into has no band, GOV.UK says to contact the council, which will arrange for it to be assessed.
  • The bill is backdated once the band is set. Peterborough City Council, for example, said in March 2026 that Valuation Office delays had reached over a year in some cases, and suggested paying something on account (read 15 October 2026).
  • If you think the band is wrong, GOV.UK explains how to challenge it, and you have a legal right to do so within 6 months of starting to pay council tax on the home.
Sources (5)
How council tax bands work, and how to challenge yours

What will energy, water and broadband cost in a new build?

Use the home's own energy rating and meter, not a national average, once you have them.

  • Ofgem's £1,723 a year (£1,935 on the previous consumption basis) is the average cap for Direct Debit customers in England, Scotland and Wales for October to December 2026. It changes every three months.
  • A new property must have an Energy Performance Certificate, which rates it from A to G and gives its typical energy costs (GOV.UK). Ask the developer for the rating of your house type before you reserve.
  • Since 1990 every new house has had a water meter, so you pay for the water you use plus a standing charge (CCW). The £639 average covers all homes, metered or not.
  • New homes in England must be built with gigabit-ready infrastructure and, within a £2,000 cost cap per home, a gigabit-capable connection, or the next fastest available (GOV.UK, since 26 December 2022). Ask which providers sell broadband on the development's network.
Sources (5)
Set up energy, broadband and water in a new build

What are service charges and estate charges on a new build?

Charges for shared parts of a building or an estate. GOV.UK lists both among the costs to weigh before you apply.

  • GOV.UK's Your First Home guidance lists service charges and estate charges with council tax, insurance and maintenance as costs to consider, and leaves all of them out of its monthly example.
  • Before you reserve, ask the developer who will look after the roads, paths, green spaces and any shared parts of the building, what the yearly charge is and how it can change. Your conveyancer can check the terms.
  • These charges are separate from council tax and are not in any of the averages on this page.
Sources (1)

When does the equity loan start to cost money, and how is it repaid?

Interest starts in year 6. It does not pay off the loan.

  • The loan is interest free in years 1 to 5, then 1.5% in year 6 and 3% from year 7 (GOV.UK).
  • In GOV.UK's example that is £75 a month in year 6 and £150 a month from year 7 on a £60,000 loan, on top of the mortgage.
  • Interest payments are separate from your mortgage and do not reduce the amount of the loan you owe.
  • You normally repay the loan when you sell, as the same share of the home's value as the loan was of the price. GOV.UK's examples: on a £60,000 loan against a £300,000 home, you repay £64,000 if the home is later worth £320,000, or £56,000 if it is worth £280,000.
  • You can repay some or all of it earlier. GOV.UK will publish the minimum repayment, the valuation rules and any fees before applications open.
Sources (1)

What will I pay upfront when I buy through Your First Home?

The deposit, any stamp duty, and legal and mortgage fees.

  • A deposit of at least 2.5% of the price: £7,500 on a £300,000 home (GOV.UK).
  • Stamp Duty Land Tax in England: first-time buyers pay none up to £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 the relief does not apply (GOV.UK).
  • So a £300,000 home pays no stamp duty, and a £375,000 home, Reading's price cap, pays £3,750 (Taupia's arithmetic).
  • Inner London's price cap is £650,000, above the £500,000 limit, so a home there priced over £500,000 gets no first-time buyer relief.
  • Legal and mortgage fees come on top (GOV.UK).
Sources (2)

Who can use Your First Home, and when does it open?

First-time buyers of new-build homes in England, from February 2027.

  • To use it you will normally need to be a first-time buyer, buy a new-build home in England within the local price cap as your main home, have a household income of £110,000 or less (£140,000 in London), and get a mortgage from a participating lender (GOV.UK). Full rules come before applications open.
  • Price caps are set by area. GOV.UK's examples: £375,000 in Reading, £355,000 in Manchester, £320,000 in North Devon and £220,000 in Middlesbrough, with £650,000 for inner London and £500,000 for outer London.
  • The timeline: pre-registration and guidance by the end of December 2026, the first applications in February 2027 and the first sales in April 2027. Pre-registering does not commit you to buying.
  • The scheme has £4.7 billion over 5 years: £700 million in 2027 to 2028 and £1 billion in each year after.
  • You own the home from completion. The government is not a joint owner or your landlord.
Sources (1)

What should I check before I reserve a plot?

Seven checks that turn GOV.UK's example into your own monthly figure.

  1. 1

    Check the price cap and the income limit

    Confirm the home is within your area's price cap and your household income is within the limit, then pre-register when the scheme opens.

  2. 2

    Find the likely council tax band

    Look up finished homes of the same type on the development on GOV.UK's band search, and budget for the band above as well.

  3. 3

    Ask for the energy rating

    Ask the developer for the EPC rating and typical energy costs of your house type.

  4. 4

    Get the estate and service charges in writing

    Ask what the yearly charge is, what it covers and how it can rise, and have your conveyancer check it.

  5. 5

    Check broadband for the development

    Ask which network serves the site and which providers sell broadband on it.

  6. 6

    Budget for the equity loan interest

    Add 1.5% of the loan a year from year 6 and 3% a year from year 7 to your monthly budget.

  7. 7

    Add up the upfront costs

    Add the deposit, any stamp duty, legal and mortgage fees, and the cost of moving.

Sources (5)

Where does Taupia fit when I buy a new build?

  • The address block above shows a home's council tax band and the council's charge for that band this year, its water company and that company's average bill, who supplies the energy and the default price for the home, and broadband deals. It covers England, Scotland and Wales.
  • A plot without an address yet is not on the address list. A finished home of the same type on the development shows the council, the water company and that home's band and charge; your own band is set after completion.
  • Taupia does not set up council tax or switch water: register with the council and the water company yourself. It does not arrange mortgages, the equity loan or conveyancing either.
  • Taupia is free to use.
How Taupia is free to use

Questions about the costs of buying through Your First Home

How much does a Your First Home new build cost each month?

GOV.UK's example for a £300,000 home is £1,248 a month in years 1 to 5, £1,323 in year 6 and £1,398 from year 7. Council tax, energy, water and the TV Licence add about £345 to £411 a month on England's 2026-27 averages, before broadband, insurance and any estate charges.

Is the Your First Home equity loan interest free?

For the first five years. GOV.UK says interest is 1.5% in year 6 and 3% from year 7, which is £75 and then £150 a month on a £60,000 loan. The interest is paid separately from the mortgage and does not reduce the amount of the loan you owe.

Do first-time buyers pay stamp duty when buying through Your First Home?

In England, first-time buyers pay no Stamp Duty Land Tax up to £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 the relief does not apply. A £300,000 home pays nothing, and a £375,000 home pays £3,750.

What council tax band will a new-build home be in?

Nobody knows until the Valuation Office bands it after the home is built, using what similar homes could have sold for in 1991. Finished homes of the same type nearby are the best guide. If your home has no band when you move in, contact the council and expect the first bill to be backdated.

When does the Your First Home scheme open?

GOV.UK says pre-registration opens by the end of December 2026, the first applications in February 2027 and the first sales in April 2027. Pre-registering does not commit you to buying. Full guidance, terms and conditions, and the price caps for each area are due before applications open.

Do I repay more than I borrowed through Your First Home?

You repay the same share of the home's value as the loan was of the price, so it follows the market. In GOV.UK's example, a £60,000 loan on a £300,000 home means repaying £64,000 if the home is later worth £320,000, or £56,000 if it is worth £280,000.

Plan the bills for a new home

The guides for each bill at a new build, and for buying a home.

Start here

Moving into a new-build home

Recommended

The developer's supplier, missing meter numbers and council tax banding delays.

Official references

Buying a new build with Your First Home?

Pick the address above, or a finished home of the same type on the development, to see the council tax band and charge, the water company, who supplies the energy and broadband deals. You register with the council and the water company yourself. Taupia is free, and nothing changes without your approval.

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Cite this page

Taupia. "What does a Your First Home new build cost each month, beyond the mortgage?". Last updated 28 October 2026. https://taupia.com/move-home/your-first-home-scheme-costs