Housing Secretary Robert Jenrick has anounced plans to cut the cost of a newly-built home by a third for some first-time buyers. The First Homes scheme will give those who qualify the opportunity to buy a home in their local area. The average price of a newly-built home in Yorkshire is £212,721. Under First Homes, a property sold with 30 per cent off this price would deliver a £63,816 saving.
The cut price will be prioritised for veterans and key workers such as nurses, police officers and firefighters and the First Homes will remain permanently affordable as the discount will be locked into the properties to ensure more first-time buyers benefit in years to come. The discount will only apply to a proportion of new homes, with the Government consulting on how this will be delivered
Housing Secretary Rt Hon Robert Jenrick MP said: “First Homes will be genuinely 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 per cent 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."
The Government is committed to delivering more than one million new homes over the next five years to further improve the affordability of housing. The proposals published today, which could see tens of thousands of First Homes being built, include measures to help release more land.
The latest figures show the number of first-time buyers reaching 357,090 – an eleven-year annual high and an increase of 84 per cent since 2010 – and the percentage of home owning 25 to 34-year-olds has grown from 36 per cent to 41 per cent over the last five years.
Paula Higgins, Chief Executive of the Homeowners Alliance, said: "We know that first-time buyers will welcome the opportunity to buy a good quality home at a discount in their local area. We look forward to contributing to the consultation and working with the government to ensure that the scheme does what it says on the tin - more high quality and affordable local homes for current and future first-time buyers."
The Government has extended the Help to Buy: Equity Loan scheme to 2023 and is consulting on a new national model for shared ownership, enabling more people to take their first step on to the housing ladder by reducing the initial share that has to be bought, and then enabling them to take further steps in one per cent increments rather than having to purchase chunks of 10 per cent.