What is the First Homes Scheme?
Introduced by the government today, First Homes is a new scheme designed to help first time buyers and key workers onto the property ladder.
Available on new build properties, homes will be offered at a discount of 30%-50% compared to the market price, and aims to keep buyers local rather than being priced out by expensive locations. It is open to anyone who is eligible (see eligibility criteria below), however local councils will be able to prioritise certain groups of buyers.
Upon the schemes introduction, property prices will be capped at £250,000 (£420,000 in London) for eligible parties. To be eligible, you need to be a first-time buyer and have household earnings below £80,000 (£90,000 in London.) You will also need to take out a mortgage of at least 50% of the property's value, leaving the remainder as a deposit.
The first homes to be sold under the scheme have already launched in Bolsover. Further sites will be launched in the next few weeks, with the government anticipating around 1,500 First Homes becoming available by the end of 2021, and at least 10,000 in the next year.
The discounts will apply to the homes for the foreseeable future - no deadline, and will apply to the property each time it is sold, not just upon its first purchase.
Last updated April 18th, 2024
