First-time buyers can take advantage of a minimum 30% discount compared to the market price on 'affordable housing'. This new Government scheme is designed to help local first-time buyers and key workers onto the property ladder.
Launched on the 4th of June 2021, this follows similar schemes that aim to help first-time buyers get onto the property ladder.
What does the scheme offer?
First-time buyers can benefit from a 30% discount on affordable housing in England, with the power given to local authorities to set a minimum higher discount to either 40% or 50% if they can demonstrate a need for this in their local area.
A key point of this scheme is that the discount can be passed down to future purchasers if the house goes on sale.
The scheme aimed at getting more people onto the housing market with a priority on keyworkers (anyone that is deemed essential for the functioning of a local area) because the housing market pushing these key workers away from major towns and cities where they are needed.
First Homes will be offered on a limited number of plots in most new developments once the scheme is fully up and running. First, you will need to check whether the builder is currently including First Homes as part of the development. If yes, you must qualify through the eligibility criteria and apply through the builder.
There is a minimum of 5% of the discounted purchase price deposit required.
Who is eligible for the scheme?
The scheme is only available for First-Time buyers.
Households or individuals purchasing are required to have an annual income under £80,000 (or £90,000 in Greater London)
The post-discount price of the property must not exceed £250,000 across England or £420,000 in London.
There are measures in place to not allow this to be used for investment purposes and should be the buyers only home.
Local authorities can set other criteria to be eligible for this scheme, however, some restrictions do still apply. Please check your local requirements.
Find out more at: https://www.gov.uk/guidance/first-homes