What is the First Homes scheme?

Government propose discount scheme for first time buyers and key workers

First Homes Discount

Under a new home-buying scheme proposed by the government, first time buyers will be able to purchase a new build home with a 30% discount.

Initially announced on February 9th 2020, the First Homes scheme will give people in England the chance to buy a home in their local area for nearly a third less than the market price – saving them an average of almost £100,000.

 

First Homes Discount: Costs

The First Homes scheme will not only reduce the amount that buyers pay for their homes, but it will also reduce the size of their deposit, making it easier for buyers to save as well as meet mortgage affordability requirements.

The average new build property currently costs £314,000, however purchasers using the scheme will save an average of £94,000, with those putting down a 20% deposit needing to save £18,000 less.

The discount will also be locked in to the property, meaning that if the homeowner chooses to move up the property ladder, they will have to sell the house with a 30% discount on its market value. Housing Secretary, Robert Jenrick, also confirmed that the discount would be passed on when the property was sold in order to help future first time buyers.

 

First Homes Discount: Eligibility

The scheme aims to help people in areas of high demand, who would be unable to afford to buy a home locally without the discount.

Priority will be given to military veterans and key workers such as nurses, police officers, firefighters and teachers. However, the initiative will also be open to people in other professions.

The government is currently consulting on the scheme and no date has been set for its introduction. However, you can register with Share to Buy to be kept up to date with all developments regarding the First Homes discount scheme!

 

To find out more about other home-buying options such as Shared Ownership and Help to Buy, visit our article index for informational features and blog, or check out our helpful FAQs and guides. Alternatively, you can start your search for a new home on Share to Buy’s property portal today!