The government has launched it’s ‘First Homes Scheme’ which aims to provide local first time buyers with, at least, a 30% discount on new build homes compared to the market price. The same percentage that is discounted will be passed on to future first time buyers – which means that the homes within this scheme will always be sold below market value.
The aim is to provide local residents the opportunity to buy a new property within their local area, where they might be currently struggling to afford market prices.
The First Homes project has initially launched in the Bolsover district, East Midlands, but is set to launch nationwide within the next few weeks. The government has pledged to deliver at least 10,000 homes a year, and more, if the project is successful.
Mobeen Akram, National New Homes Account Director at Mortgage Advice Bureau (MAB), said: “We’re absolutely delighted that the first properties under the government First Homes Scheme are now on the market. The scheme is designed to help first time buyers only and will be prioritised for local people and key workers as part of the government’s commitment to deliver one million new build homes by 2024. MAB is really pleased to be working closely with Bolsover District Council, Homes England, and Keepmoat Homes to launch the first homes scheme and support many more first time buyers in getting onto the property ladder.
“First time buyers (FTBs) are often referred to as the lifeblood of a sustainable market. The scheme will help them to make their home purchase more realistic with lower deposit requirements and better affordability with the chance to buy a new home at a 30% discount. The essential need and demand for FTBs can be easily demonstrated by a similar scheme introduced by the Scottish Government, which was oversubscribed in just five days.”
In terms of how the scheme works, Mobeen, commented: “The scheme makes buying a new build home in your local area more affordable, specifically at a discount of at least 30% compared to the market price of the property. The percentage will then be passed on with the sale of the property to future first time buyers, and therefore, homes will always be sold at a discount.
“It’s encouraging to see the scheme is already supported by major high street lenders such as Halifax and Nationwide along with local building societies such as Darlington and Chorley, which have also announced their participation and agree to provide 95% loan-to-value mortgages for first homes.”
If you’d like more information on the First Homes Scheme, click here.
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