The Government has pushed ahead with a new scheme which will save first-time buyers a third on the cost of local homes. First announced during the Election campaign, the First Homes scheme will lower deposit and mortgage requirements for local first-time buyers by a third, saving eligible buyers around £100,000 on average. The discount will be prioritised for veterans and key workers such as nurses, police officers and firefighters.
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 take more than £18,000 off a 20% deposit. The scheme will apply the discount in perpetuity, so when the home is sold a new local buyer will be able to purchase it at a discount as well. The proposals published today also outline the building of thousands of First Homes, including measures to help release more land.
Additionally, the government is consulting on a new national model for shared ownership by reducing the initial share that has to be bought and then enabling buyers to take further steps in 1% increments instead of having to purchase in chunks of 10%.
Housing Secretary, Robert Jenrick, 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.