A scheme to cut the cost of some new homes by a third has been launched to help more first-time buyers get onto the property ladder.
The government today announced ‘First Homes’ which will enable people to buy a home in their local area rather than being forced to look elsewhere.
Veterans and front-line workers such as police, nurses, teachers, firefighters and prison officers will receive priority for the scheme.
It is expected First Homes will save eligible first-time buyers an average of around £100,000 on the price of their home.
What’s more, the 30% price reduction will apply in the future too, so anyone who subsequently purchases the property will benefit from the discount.
‘Life-changing’
Robert Jenrick MP, 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.”
Building homes
The government has a goal to build one million new homes over the next five years. As part of today’s proposals, there were measures to help release more land so that tens of thousands of First Homes could be created to facilitate the scheme.
According to the government, the average price of a newly-built home in England is £314,000.
Under First Homes, a property sold with 30% off this price would provide a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit.
Daniel Hegarty, CEO of online mortgage company, Habito, said: “Today’s announcement from the government could unlock the door to thousands of new first time buyers, including veterans and key public sector workers, who have previously been priced out of an increasingly expensive housing market.
“A minimum discount of 30%, resulting in a saving for eligible first-time buyers of an average of £100,000, will be highly meaningful to many people.
“However, with house-price growth consistently outstripping wage growth, we would ask the Government to carefully consider the scheme’s eligibility criteria and look closely at what more can be done for young people who aspire to buy their own home.”
Is there any chance to help like us, me and my wife working in hospital full time for many years now and we are still renting for 750 pounds a a month for 13 years now but we cannot get in to property ladder is there any help for frontliners like us.thank you very much!
Please see response to a similar question from broker Jeni Browne at Mortgages for Business https://www.whatmortgage.co.uk/mortgages-business-residential-mortgage-advice-june-2020/. Basically, there are no special schemes but you could qualify for First Homes Programme, which is supposed to be launched by the Government later this year (as long as neither of you have owned your own home before). It involves 30% discount off a new build property.