First time buyers are being offered discounted homes as part of the government’s new First Homes scheme.
The scheme is designed to help local first-time buyers, many of whom will be key workers, such as NHS staff and veterans, onto the property ladder by offering homes at a discount of at least 30% compared to the market price.
That same percentage will then be passed on with the sale of the property to future first-time buyers, meaning homes will always be sold below market value – benefiting local communities for generations to come.
The First Homes scheme will support local people who struggle to afford market prices in their area but want to stay in the communities where they live and work.
When will the First Homes scheme be introduced?
The first properties went on the market in Derbyshire in early June. Further sites are set to launch across the country in the coming weeks and months. A further 1,500 will enter the market from the autumn, with at least 10,000 homes a year being delivered in the years ahead and more if there is demand.
Councils will be able to prioritise the homes for key workers, such as nurses and teachers who have been looking to get on the housing ladder while supporting their community during the Covid-19 pandemic.
Major high-street lenders, along with local building societies and community lenders, have announced that they will be offering high loan-to-value mortgages against First Homes to support the roll-out of the scheme. Those that have announced their participation in the scheme include:
- Chorley Building Society
- Darlington Building Society
- Halifax
- Leeds Building Society
- Mansfield Building Society
- Nationwide Building Society
- Newcastle Building Society
The First Homes scheme follows on from the 95% mortgage guarantee scheme which helps first-time buyers secure a mortgage with just a 5% deposit and the government’s ‘Own Your Home’ campaign showcasing the range of flexible home ownership options available.
Housing Minister Robert Jenrick said: “Enabling more people to buy their own homes is at the heart of the mission of this government, and First Homes will offer a realistic and affordable route into homeownership for even more people who want to own their own home,”
“Thanks to First Homes, we will offer more homes to local people and families, providing a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices.”
He went onto explain that the scheme will help front-line doctors, nurses, delivery drivers and supermarket staff that are looking to get their first foot on the housing ladder a chance to buy a home at a 30% discount.
“These homes will be locked in for perpetuity to first-time buyers and key workers from their local area — making them an asset to both their owners and the wider local community.”
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