First Time Home Buyers
You can get up to 50% off on new-build homes through government schemes!
When it comes to buying your first home there can be a lot to understand and it could be one of the biggest financial investments you make in your lifetime. It is harder than ever to get onto the property ladder but with the help of the 'First Homes Initiative' scheme it could be a possibility in your near future! Below we cover the key highlights of the scheme.
The First Homes Initiative
The Government are offering a new scheme that could save you up to £100,000 or more on your first home in England. The First Homes initiative scheme is aimed at first-time buyers in areas where these new homes are built, which includes people who have worked on the frontline during the pandemic - NHS staff, delivery drivers and supermarket staff. The aim is help them get onto the property ladder with homes discounted up to 30% compared to market house prices. If local authorities can demonstrate a need they may even be able to offer bigger discounts of up to 40% to 50%.
Supporting Local Communities and People
An important aspect of this initiative is the benefit that it will have on local communities for years to come. The discount given on these first home new builds will be passed on with the sale of the property for future first time buyers that are looking to buy a property in their local area.
"The 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." - Ministry of Housing.
First Time Buyers Only
The First Homes initiative is the latest scheme to tackle the exceeding challenges people face to buy a house and get onto the property ladder. It is for first time buyers only and excludes households in Greater London that exceed a combined income of over £80,000 to £90,000. Local councils will also be able to bring in their own requirements such as prioritising local people or key workers.
Lower Price Caps
Price caps are also imposed onto these properties meaning the purchaser cannot be required to pay more than £250,000 outside of Greater London or £420,00 inside for a property. Councils can make a case to further lower these price caps.
Not for Investment
The government plans to have at least 10,000 first homes built each year and if the demand is there this will increase. These homes will have measures that prevent people buying them for investment purposes and those that can afford to buy a first home without a mortgage will not be eligible for the First Home Initiative.
"First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home." - Robert Jenrick, the Housing Secretary.
To help support the roll out of this First Homes initiative Halifax and Nationwide Building Society, as well as other local building societies and community leaders have put forward that they will be offering high loan-to-value mortgages for first homes.