First-time Buyers!

Posted on 26 June 2020

First-time buyers and key workers will be able to buy new-build homes with a 30% discount under a new scheme which is being proposed by the Government.

30% discount for key workers

Key workers such as nurses, police officers, firefighters, and teachers, will he given priority in this scheme.

A proportion of new homes will be made available at a 30% market discount rate. The discount would be passed on when the property was sold in order to help future first-time buyers.The Government is currently consulting on how the scheme will be delivered and no date for its introduction has yet been given.

Why is the government introducing this?

The Government has made improving the UK’s housing situation a key priority, pledging to build more than one million new homes during the current parliament in a bid to improve affordability.

The First Homes scheme is part of its commitment to help more people get onto the property ladder.

Who does it affect?

Firstly the Government will not only reduce the amount buyers pay for their homes, but it will also reduce the size of the deposit they need to save up and make it easier for them to meet mortgage affordability requirements.

With the average new-build home costing £314,000, first-time buyers using the scheme will save an average of £94,000, while those putting down a 20% deposit will need to save £18,000 less.

The scheme aims to help people who would be unable to afford to buy a home locally without the discount.

Most of the details of how the scheme will operate are still unclear, the Government has indicated that it will impose a price cap on the properties available through First Homes to ensure the initiative helps those who would benefit most from it.

The discount will be paid for through contributions that housing developers routinely provide through the planning system.

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