First Homes aims to help young people and key workers – such as NHS staff and veterans – get on the property ladder by supporting them to buy property below the market value.
In particular the scheme hopes to address the problem faced by many first-time buyers – where they cannot afford to buy in their local community. First Homes will help them purchase a property where they live and work to avoid them having to move far away to find an affordable home.
It’s not just those who are buying now who will benefit, the government said the properties involved in the scheme would retain their status as ‘First Home’ properties and the discount would apply to subsequent owners.
Already a number of big lenders such as Nationwide and Lloyds have revealed they will be offering low deposit mortgages to help those wishing to purchase properties using the scheme.
Other more local building societies such as Newcastle Building Society and Leeds Building Society have also pledged their commitment to support borrowers hoping to purchase a home though the initiative.
Locations
Today, the first ‘First Homes’ properties went on the market in Bolsover, East Midlands. Further sites are expected to launch in the coming weeks with a further 1,500 due to enter the market from the autumn.
The government said at least 10,000 homes a year would be delivered in the years ahead if there is enough demand.
Housing Secretary, 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.”
Finding the right scheme for you
The launch of First Homes comes following the introduction of the 95% mortgage guarantee scheme. And it coincides with the government’s ‘Own Your Home’ campaign, showcasing the range of flexible home ownership options available.
The campaign highlights the support available to help make home ownership a realistic and affordable option for more people.
First-time buyers can find the right scheme for them via the Own Your Home website which provides a single gateway for all routes to home ownership.
Councils will also be able to prioritise the homes for keyworkers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.
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.
Andrew Haigh, chief executive at Newcastle Building Society, which is one of the lenders involved in the scheme, said: “Home ownership can often feel out of reach for first time buyers – especially those without access to the bank of mum and dad.
“We’re committed to delivering innovative ways to help first time buyers find affordable and sustainable ways to own their own home. We’re pleased to be one of the first lenders to support the scheme.”
