First Homes Scheme brings opportunity to buy at a discounted price
First time buyers, and key workers, in England could now benefit from a new Government scheme, which offers the chance to buy a new build property at a discounted price.
Called the First Homes Scheme it offers a discount of at least 30% off the market value of a new build home (or an even higher discount subject to the decision of individual local authorities). The value of the property, however, must be no higher than £250,000 (or £420,000 in London).
To qualify the buyer has to have:
- Evidence of being a first time buyer or key worker. Some local authorities may also set their own eligibility criteria i.e. the scheme will only be available to those with local connections.
- A deposit of 5% of the price being paid
- A mortgage of at least 50% of the price being paid
- A household income of less than £80,000 (or £90,000 in London)
The property also has to be the main residence of the buyer and the discount applied to any subsequent sale of the property; with the next buyer also required to meet the criteria of being a first time buyer etc. as set by the local authority.
The scheme was originally launched by the Government, back on summer, but it’s now that properties are becoming available to buy after new build developers, and individual local authorities, have worked together in making the affordable housing available.
For more information about the scheme, simply access the Own your Home government website or alternatively you could contact local new build development sites to enquire if they are offering properties under the scheme. You then have to apply via the participating developer.