First-time buyers offered new homes at up to half price under government scheme
First-time buyers in England will be able to apply for a discount of up to 50 per cent on a new build home under a government project launched today.
The First Homes scheme will help people onto the property ladder, which experts believe could spark a scramble for properties and further bolster the house price boom.
‘Affordable route’ to home ownership
The Ministry of Housing says the programme will help first-time buyers by offering homes at a discount of at least 30 per cent 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.
“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 home ownership for even more people who want to own their own home,” housing secretary Robert Jenrick said.
The government hopes 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.
10,000 new homes targeted per year
The first properties went on the market today as part of the first phase of the project.
A further 1,500 will enter the market from autumn, with at least 10,000 homes a year being delivered in the years ahead.
Lenders including Halifax and Nationwide have said that they will offer high loan-to-value mortgages to support the rollout of the scheme.
“Building societies have always been dedicated to bringing home ownership within reach for as many people as possible, which is why we are working with the sector to help bring forward mortgages for First Homes as soon as possible,” said Robin Fieth, chief executive of the Building Societies Association.
First Homes follows on from the 95 per cent mortgage guarantee initiative which helps first-time buyers secure a mortgage with just a five per cent deposit.