The First Homes Scheme
Housing Secretary Robert Jenrick announced a new housing scheme, The First Homes. This is an initiative to allow people buy homes at a discount. The eligible first-time buyers will be able to save on average around £100,000.
New homeowners will be able to start their new journey through the scheme that cuts prices of some new homes by a third. What is more, people will now be able to buy homes locally rather than looking at cheaper, remote areas.
Who exactly will benefit from the First Homes scheme? The government wants to prioritise veterans and key workers. That is to say, veterans will be able to use the new scheme Under Armed Forces Covenant. Councils will be able to use it for their local front-line workers, such as nurses, police officers and firefighters.
Moreover, Housing Secretary Rt Hon Robert Jenrick MP said:
“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.”
This means that when the home is sold in years to come the new local buyer will also be able to benefit from the discount.
More to Come
The government is now consulting on a price cap on properties available through the scheme, as it has done for Stamp Duty cuts and the new Help to Buy equity loan scheme.
The consultation looks for opinions on the following:
- what First Homes are and who should be eligible for them
- how the scheme should work in practice
- how to deliver more of these homes through developer contributions
- the requirement for delivering these homes through planning or legislation
It is hoped that the local buyers will welcome the new initiative as it will help them stay and buy in their local areas. You can read more on the topic here.
If you are on the lookout for a friendly managing agent, please contact us.