FIRST-time buyers are braced for a stampede today to get their hands on shiny new houses which will have at least a THIRD off – but a measly 12 will be up for grabs at first.
The new programme will cap the price of new affordable homes at £250,000, or £420,000 in London – but only for those on low incomes.
It will mean Brits can get up to 50% off market value – saving buyers an estimated average of £100,000.
Housing Secretary Robert Jenrick hopes to be able to put 1,500 home up by the end of the year, with developers forking out the upfront costs.
But the initial pilot today will see a scramble for just 12 homes in Bolsover.
The scheme aims to help more young Brits get onto the property ladder as house prices continue to soar – putting it out of reach for many.
Who is eligible?
ONLY first-time buyers can purchase a home under the First Home scheme and it's not available in Wales or Scotland.
As the scheme is aimed at helping buyers on lower incomes get on the property ladder, you won’t be eligible if your combined household income is over £80,000, or £90,000 if you live in London.
Those who can afford to buy one of the homes without a mortgage will not qualify for the help.
Buyers must use a mortgage for at least 50% of the price of the discounted home.
However, further conditions can be set by local councils so the eligibility criteria may vary depending on where you're looking to buy.
For example, some authorities may give key workers first dibs.
But after the first three months of the homes going on sale, extra conditions set by the local authority will be removed for any First Homes which haven’t been sold or reserved.
The prices will be set by independent valuations, and housebuilders forking out for the discount out of the profits that they make.
And the discount will be passed on when the owner sells the home, meaning more lower income Brits will be able to benefit in years to come.
Councils will be able to prioritise them for local people and key workers.
They will have a minimum of 30% off, but developers could offer even more to tempt them to be snapped up.
High street lenders including Lloyds and Nationwide announced that they will offer new high loan-to-value mortgages to support the programme.
Mr Jenrick told The Sun last night: "Too often first-time buyers are forced out of their local area due to rising house prices.
"First Homes will help communities stick together for generations to come."
But Rightmove’s Director of Property Data Tim Bannister said last night that demand was likely to far outweigh the supply until the scheme gets underway.
He said: "Based on current available stock levels it’s unlikely there will be enough of these properties to satisfy the high levels of demand, so eligible buyers will need to get in quick to have the best chance of securing one."
Boris Johnson first revealed the First Home scheme as part of a wider affordable housing plan announced in June last year.
Still confused? We've put together a guide to everything you need to know about the First Homes Scheme.
If you're looking for inspiration for how to save for your first home, you should check out our My First Home series.
We recently spoke to a first-time buyer who explained how she got a 20% discount on her on-bed flat, which she bought for £198,400 aged 24.
Life-changing first home scheme launches today
BY Robert Jenrick, Housing Secretary
This Government is working hard to enable everyone to get on the housing ladder.
Last year alone we delivered more homes than in any year since 1987.
Our Help to Buy has helped over 300,000 families buy their own home and experience the sense of achievement and pride that comes with owning your home and making it your home.
This week sees the launch of our First Homes scheme which I truly believe will be life-changing for communities across the country.
Designed to help local first-time buyers onto the property ladder, by offering homes at a discount of 30% compared to the market price.
Too often first-time buyers are forced out of their local area due to rising house prices. First Homes will help communities stick together for generations to come.
This is just one of the range of flexible home ownership options made available by this Government.
Through Government schemes such as Shared Ownership, Help to Buy, First Homes, 95% mortgage guarantee scheme and help to build we’re making home ownership easier and more affordable.
You can find the scheme for you by visiting www.ownyourhome.gov.uk.
Whatever might be holding you back from getting on the property ladder, there is a government scheme to help you join those who have already used a Government scheme so you too can own your home.
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