The Government has today announced its intentions to cut the costs of certain new homes by 30%, in order to ensure first-time buyers benefit.
Housing Secretary Robert Jenrick announced that the First Homes scheme will see a discount locked into the property to bring benefits to first-time buyers in years to come.
The scheme will lower deposit and mortgage requirements for local first-time buyers in England, with the stated aim of “shaking up the housing market and making the dream of home ownership a reality”. The discount will only apply to a proportion of new homes, with the government consulting on how this will be delivered.
Veterans will be prioritised as part of Armed Forces Covenant and councils will also be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers.
The Housing Secretary said:
“First Homes will be life-changing for people all over the country looking to buy their first home.
“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.”
Crucially for housebuilders and developers, the proposals include measures to help release more land.
The government says it is determined to rebalance the housing market to support homeownership through new schemes such as this.
The idea is that the discount will be paid for through the contributions that housing developers routinely provide through the planning system.
