First homes scheme soon to launch

June 10, 2021

Low-income workers will soon have a fantastic opportunity to get onto the property ladder, with a new scheme offering up to 50% off a brand new home.

The discount available will range from between 30% and 50% of the property value, meaning you could save up to £100,000 on the cost of a brand new home.

Individual cases will be assessed by local councils, which will prioritize key workers, local people, and veterans, using a local connection test. This will rate the suitability of applicants according to whether they grew up, work, live in the area, and have family connections there. If a property remains unreserved and unsold on the market for more than 3 months, the local authority conditions will be removed, opening up the purchase opportunity to a broader range of first-time buyers.

Locals looking to get on the property ladder with a combined income of less than £80,000 will be eligible to apply. 

Applicants will need to have the required savings after the discount, as well as a mortgage offer for a minimum of 50% of the house price. There is no registration to take part in the scheme, instead, potential buyers will need to apply through developers offering the discounted new homes.

Property prices for the scheme will be capped at £250,000 or below, after the discount. The home will remain part of the scheme on resale, meaning that the discount received will not be retained but passed on, continuing to benefit low-income workers in the generations to come.

Private new home developers taking part in the scheme will select 25% of their properties for qualifying buyers. High street banks, building societies, and community lenders will help to support the scheme by offering high loan-to-value mortgages.

There will be no deadlines for applications, the timing will simply depend on the progress of the relevant development, and whether a property is ready to move into.

Launching on the 28th June this year, the new First Homes Scheme is part of the Government’s pledge to provide 1 million new affordable properties across England by 2024. The scheme is aimed at helping those who struggle to afford market prices in their local area, making the prospect of owning a home more realistic.

For more information on how to get onto the property ladder, click here.

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