First Homes will see a discount locked into the property to ensure more first-time buyers benefit in years to come.
A new generation of homeowners will be able to take their first step on to the housing ladder thanks to a scheme cutting the cost of some new homes by a third, Housing Secretary Robert Jenrick has announced today (7 February 2020).
First Homes will see a discount locked into the property to ensure more first-time buyers benefit in years to come. Local people unable to afford a home will be able to buy in their area, rather than be forced to look elsewhere by rising prices.
The scheme will lower deposit and mortgage requirements for local first-time buyers in England – shaking up the housing market and making the dream of home ownership a reality. The discount will apply to a proportion of new homes, with the government consulting on how this will be delivered.
Veterans will be prioritised as part of Armed Forces Covenant and councils will also be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers.
Housing Secretary Rt Hon Robert Jenrick MP said:
“First Homes will be life-changing for people all over the country looking to buy their first home.
I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership.”
“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”
The average price of a newly-built home in England is £314,000. Under First Homes, a property sold with 30% off this price would deliver a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit."
Credit: Ministry of Housing, Communities & Local Government, February 2020