The UK has announced its First Homes scheme to help people buy their first homes. The programme is in addition to other initiatives such as Help to Buy, shared ownership and 95% mortgages.
First Homes will be for first-time buyers only, and councils will be able to prioritise them for local people and for key workers. The scheme will make a proportion of new homes available with a minimum 30% discount on the open market value which will be passed on with the sale of the property to future first-time buyers. This means homes will always be sold below market value and local communities will benefit for generations to come.
The first ‘First Homes’ will be marketed over the summer of 2021, and the government will be funding a further 1,500 homes to come to the market from the end of 2021. Various banks and building societies have agreed to provide 95% loan-to-value mortgages for First Homes.
Housing Secretary Rt Hon Robert Jenrick MP said: “First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.” He added that First Homes will provide, “a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices. These homes will be locked in for perpetuity to first-time buyers and key workers from their local area.”
Photo: Robert Jenrick