First Homes Scheme - 30% discount on properties

Discounted homes for key workers and local residents will now be available as government launches First Homes scheme providing 30% discounts for first time buyers

The first properties available for sale as part of the scheme are in the Bolsover district, East Midlands.

The government said ‘the First Homes scheme will help local first-time buyers – many of whom will be key workers like NHS staff and veterans – onto the property ladder by offering homes at a discount of at least 30% compared to the market price’.

There will be safeguards so that buyers will not be able to sell on their property at market values but will have to retain the 30% discount level.

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.

The initial First Homes properties went on the market today as part of the first phase of an early delivery project.

Further sites are set to launch across the country in the coming weeks. A further 1,500 will enter the market from the autumn, with at least 10,000 homes a year being delivered in the years ahead and more if there is demand.

Delivery of the scheme is part of the government’s wider pledge to build one million new affordable and attractive homes in this parliament and help put home ownership within reach for people across the country.

Major high street lenders Halifax and Nationwide Building Society, along with local building societies and community lenders, announced that they will be offering high loan-to-value mortgages against First Homes to support the roll-out of the scheme.

First Homes follows on from the 95% mortgage guarantee scheme announced at the Budget in Marchk which helps first-time buyers secure a mortgage with just a 5% deposit.

Broadcast, digital and radio adverts are showcasing the range of government schemes available to first time home-owners to help them get their foot on the housing ladder.

There are also details of the range of government schemes on the Own Your Home website which provides a single gateway for all routes to home ownership.

Housing secretary Robert Jenrick MP said: ‘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.

‘Thanks to First Homes, we will offer more homes to local people and families, providing a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices.

‘These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.’

Tim Beale, CEO of Keepmoat Homes, said: ‘We are delighted to be working with our partners in government, Homes England and Bolsover District Council, to launch the First Homes scheme which is specifically designed to support first-time buyers and keyworkers and help them take their first steps on the property ladder.’

David Postings, CEO of UK Finance, said: ‘Key workers have kept the country running during the pandemic and we are committed to doing what we can to help them, and other local first-time buyers across England, to realise their dreams of owning their own homes.

‘Our commitment is shared across all necessary stakeholders, as underscored by the high level of co-operation between lenders, government, local authorities and developers in helping drive the First Homes scheme forward.’

Councils will also be able to prioritise the homes for key workers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.

Each individual local authority can set a local connection test to determine who should be prioritised for the scheme based on the needs’ of their communities.

Additionally the government has made available a further £40m package to local councils to help level up local communities. This includes £20m of capital funding for the 70 successful bids for the Land Release Fund (LRF) and £10m of resource funding from the One Public Estate (OPE) programme which is delivered in partnership between the Ministry of Housing (MHCLG), the Cabinet Office and the Local Government Association.

The LRF funding will release council-owned land for more than 2,600 homes over the next two years by helping to regenerate mainly brownfield land across the country which is often unused and derelict.