First-Time Buyers Scheme Now Open For Bids

 Home builders across England can now bid for their share of a £150 million package by offering plots for sale as First Homes, the flagship government scheme aimed at first-time buyers and key workers. House builders are being invited to work with the government to deliver First Homes across the country in the coming months, with the aim of delivering 1,500 homes by March 2023. First Homes helps local first-time buyers and key workers onto the property ladder by offering homes at a discount of at least 30% compared to the market price. The same percentage will then be passed on with the sale of the property to future first-time buyers. Read more on the GovUK website.

https://www.gov.uk/government/news/flagship-first-time-buyers-scheme-now-open-for-bids-from-house-builders

Housing Minister Defends First Homes Scheme Price Caps And Outlines Developer Support

The government has defended its two-tier price cap system for its First Homes scheme and confirmed that it would not provide additional financial support to property developers to support the scheme. The minister of state for housing Christopher Pincher said that it was important that price caps provided “clarity and consistency” to support consumers, developers, and mortgage lenders, which its current system did. He said its current price cap system, which states after the discount properties should be priced at no higher that £250,000 or £420,000 in Greater London, would ensure that at least 25 per cent of properties purchased by first-time buyers in England and Greater London would be included. Read more on the Mortgage Solutions website.

https://www.mortgagesolutions.co.uk/news/2021/07/15/housing-minister-defends-first-homes-scheme-price-caps-and-outlines-developer-support/

 

First Time Buyers – Parliamentary Written Answer

Sir Gary Streeter: To ask the Secretary of State for Housing, Communities and Local Government, what his policy is in the event that a developer cannot find sufficient purchasers to satisfy the First Homes policy.

Christopher Pincher: Guidance for First Homes, published alongside the written ministerial statement on 24 May 2021, recommends that if a home remains unsold after a total of 6 months of marketing, despite making every reasonable effort to ensure the home is sold to a suitable person, the developer should be able to release the home onto the open market and pay the local authority a percentage of the sale price equal to the proposed percentage discount.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2021-06-04/10155 

First-Time Buyers In England Offered New Homes At Up To 50% Off

First-time buyers in England will be able to apply for a discount of up to 50% on a new-build home under a government scheme. The First Homes initiative could save buyers £100,000 or more. But some experts say that with demand for these cut-price homes likely to exceed supply, it could spark a scramble for properties and add more fuel to the house price boom. The government says the scheme is aimed at first-time buyers in the area where the homes are built, many of whom will be keyworkers such as NHS staff. Read more on the Guardian website.

https://www.theguardian.com/money/2021/jun/04/first-time-buyers-in-england-offered-new-homes-at-up-to-50-off

Government Outlines ‘First Homes’ Initiative

The government has outlined more details about its ‘First Homes’ initiative. The Minister of State for Housing Christopher Pincher said that the homes built under the ‘First Homes’ scheme had to adhere to the following conditions.

·         New builds are to be sold at a 30 per cent discount, which will be kept in perpetuity.

·         The homes are to be ringfenced for first-time buyers.

·         The market price on the homes is to be kept at £250,000 outside of Greater London, but rising to £420,000 within.

·         The household income of the first-time buyers should not exceed £80,000 outside of Greater London, or £90,000 within.

·         The homes can be set aside by local authorities for key workers and for those with a connection to the local area.

Read more on the Property Wire website.

https://www.propertywire.com/news/uk/government-outlines-first-homes-initiative/

First Homes Plan Could Hit Social Housing Numbers

Housing associations have raised concerns over the government’s plan to provide first-time buyers with heavy discounts on new homes, saying the programme could make it more difficult to provide homes for lower-income families in the future. In a consultation document, the government said that it would like to see more developer contributions used to fund the delivery of First Homes. Read more on Inside Housing.

https://www.insidehousing.co.uk/news/news/sector-bodies-raise-concerns-that-first-homes-plan-could-hit-social-housing-numbers-64997

Key Workers To Be Given 30% Discount In New Housing Scheme

Key workers, such as nurses, police and military personnel, will get priority under a new scheme offering homes for first-time buyers at a 30% discount. Robert Jenrick, the housing secretary, said the new “First Homes” scheme, first announced during the election campaign, would save eligible buyers an average of approximately £100,000 on a first property. The Ministry of Housing, Communities and Local Government is launching a consultation on how the scheme will work, without saying how many will be on offer. It said the 30% discount would apply to “a proportion of new homes” and would be funded out of contributions from developers. Read more on the Guardian website.

https://www.theguardian.com/uk-news/2020/feb/07/key-workers-to-be-given-30-discount-in-new-housing-scheme

First Time Buyers – Parliamentary Written Answer

Baroness Thornhill: To ask Her Majesty's Government what are the essential differences between the existing legislation for Starter Homes and the new First Homes Initiative announced in the Queen’s Speech

Viscount Younger of Leckie: These new ‘First Homes’ will be made available at a discount of at least 30% and will be funded through developer contributions, reducing the cost to both local and national government. Unlike Starter Homes, First Homes will offer a larger discount to buyers that is retained in perpetuity, so that future generations can also benefit from the discount. Local Authorities will be able to prioritise these homes for local residents and key workers, such as nurses, teachers or police officers.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Lords/2020-01-07/HL178