The Government has launched its First Homes scheme with the initial properties in the scheme going on the market in the Bolsover district, East Midlands.
The scheme is designed to help young people and key workers onto the housing ladder, and is the flagship model in the ‘Own Your Home’ website. The new site illustrates the range of support available to help people access a home of their own, and includes the Help to Build scheme – yet to open for bids – and NaCSBA’s Self Build Portal.
As the showpiece of the campaign, the First Homes scheme has been designed for local first-time buyers, enabling them to purchase a property with a discount of at least 30% compared to the market price.
The discount is maintained in perpetuity for first-time buyers, meaning that when the home is sold the discount is able to be passed on to the new purchaser, as long as they fit the criteria. This ensures that the homes will always be sold below market, as long as it is first time buyers that buy it.
The scheme has been designed to specifically support key workers, such as NHS staff and veterans, and in turn offering wider benefits to local communities and enable them to stay in the communities where they live and work.
The initial First Homes properties went on the market in the Bolsover district, East Midlands, with a further 1,500 being market over the coming year. Government expects this to deliver 10,000 homes a year, which could be increase if there is demand.
The Halifax, Nationwide Building Society and a range of local building societies and community lenders have committed to providing high loan-to-value mortgages for First Homes to support the scheme.
Delivery of the scheme is part of the government’s wider pledge to build one million new affordable homes in this Parliament and help put home ownership within reach for people across the country. Help to Build is part of this commitment, which is also expected to boost housing delivery by enabling more people to custom and self build.
Help to Build
The Help to Build Scheme is designed to support self and custom home building, allowing it to become a realistic option for more people wishing to get on to the housing ladder through lower deposit mortgages.
Lowering the required deposit will free up capital, so people can build the home that they want and need – whether it’s a made to order home on a multi-plot site or a stand alone self build. The scheme will provide an equity loan on the completed home, similar to the Help to Buy: Equity Loan scheme.
The government’s ‘Own Your Home’ campaign showcases the full range of home ownership options supported by government, such as the the 95% mortgage guarantee scheme which helps first-time buyers secure a mortgage with just a 5% deposit.
Housing Secretary Rt Hon 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.
“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.
“First Homes will also support our fantastic key workers who are looking to get their first foot on the housing ladder – from front-line doctors and nurses to delivery drivers and supermarket staff – by giving many of them the chance to buy a home at a 30% discount.”