If you are a first time buyer, or key worker, in England now might be the time to buy your first home, (at a discounted price) thanks to the support of the Government’s First Homes Scheme.
What is the First Homes Scheme?
Launched back in June 2021, the scheme falls within the Government's plans to make housing more affordable. It offers the chance for first time buyers, or key workers, to buy a new build property, discounted by at least 30% of the market value, provided that its value is less than £250,000 or £420,000 in London.
Who is eligible for the scheme?
Individual local authorities can set their own criteria as to who can benefit from the scheme (although its standard for it to apply to first time buyers or key workers) but the buyer must have a mortgage of 50% of the price they are paying, as well as a 5% deposit. Their household income must also be less than £80,000.
What happens when the property is later sold?
The scheme will also benefit anyone who subsequently buys the property from the original owners – with the discount (of at least 30%) being made available to future buyers, provided they too meet the criteria that’s been set by their local authority.
How do you apply for the First Homes Scheme?
There’s no application process as such but developers and associated local authorities have been working hard to put plans in place and ensure ‘affordable’ properties can become available to buy under the scheme. It’s therefore worth checking out what local sites are being developed and make contact with the site directly – or contact local developers to check if they are participating in the scheme. The application to the scheme must then be made via the developer.