First-time buyers will get 30% discount

Some first-time buyers will qualify for a 30% discount on a new-build home via a scheme launched by Housing Secretary Robert Jenrick.

The First Homes scheme will offer a 30% discount on the price of the property, lowering the cost of both deposit and mortgage by around £100,000 per home.

Qualifications

But there are some qualifications for the deal. Preferred applicants will be key workers like nurses, police, military veterans, prison officers, teachers or applicants prepared to live and stay in the same area.

The discounted price will be passed on with the sale of the property when the owner takes the next step up the housing ladder.

Consultation

The Ministry of Housing, Communities and Local Government (MHCLG) is launching a consultation for opinions on how the scheme might work but not revealing how many homes might be included in the offer.

The minister said the scheme would be funded out of contributions from developers and would be ‘genuinely life-changing for people all over the country looking to buy their first home’.

Forced out

He said: “I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices.

A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership.

“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.”

Statement

In a statement the MHCLG said: “The proposals published today, which could see tens of thousands of First Homes being built, include measures to help release more land.

“More than 240,000 new homes were delivered in 2018-19 – more new homes than at any point in the last 30 years.”

Opportunity

Chief executive of the Homeowners Alliance, Paula Higgins, said: “We know that first-time buyers will welcome the opportunity to buy a good quality home at a discount in their local area.

“We look forward to contributing to the consultation and working with the government to ensure that the scheme does what it says on the tin – more high quality and affordable local homes for current and future first-time buyers.”