First Home Scheme Launched 4th June
The latest initiative to boost the first time buyer market has formally launched on 4th June in Bolsover, East Midlands.
The pilot aims help local first-time buyers – many of whom will be key workers like NHS staff and veterans – onto the property ladder by offering homes at a discount of at least 30% compared to the market price.
That same percentage will then be passed on with the sale of the property to future first-time buyers, meaning homes will always be sold below market value – benefitting local communities, key workers, and families for generations to come. Rightmove have identified that around a third of all sales going through at the moment are first-time buyers
A number of lenders have announced their participation by offering 95% mortgages for First Homes housing.
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 for even more people who want to own their own home.
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.
These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”
Further sites are set to launch across the country in the coming weeks. A further 1,500 will enter the market from the autumn, with at least 10,000 homes a year being delivered in the years ahead and more if there is demand.
Commenting on the launch Mark Hayward, Chief Policy Adviser at Propertymark says
“Propertymark is pleased to see a further focus on home ownership with the news of the first properties to be made available under the First Homes scheme, together with the flexible home ownership options through the launch of the Own Your Home initiative. It is good to see these creative initiatives at this crucial time, one where our members are actively dealing with a very busy market right now, full of hungry buyers. In welcoming this move we also reiterate our concern that introducing more buyers without increasing supply could further push the supply and demand out of balance, further fuelling the spiral in house prices.”
“It’s clear that the UK Government recognise the importance of homeownership, looking forward we want to see a further expansion of measures to support the market as a whole. Coupled with planning reforms to make building easier and create more homes, the UK Government should now look to incorporate initiatives to encourage and support older generations downsizing and releasing family homes.”
Each individual local authority can set a local connection test to determine who should be prioritised for the scheme based on the needs’ of their communities. Councils will also be able to prioritise the homes for key workers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.
Rightmove’s Director of Property Data Tim Bannister says:
“There’s likely to be a scramble for properties under this scheme as they become available, especially as we’ve already seen an influx of first-time buyers enter the market recently, helped by more lower deposit mortgages being available. The scheme could help level up the playing field for buyers in areas where there’s strong competition between first-time buyers and buy-to-let investors, and could help some people bring their plans forward or buy a bigger home than they were originally expecting to. Based on current available stock levels it’s unlikely there will be enough of these properties to satisfy the high levels of demand, so eligible buyers will need to get in quick to have the best chance of securing one.”