07.02.20
Cost of new homes to be cut by a third under new scheme
Getting on the housing ladder has just been made more accessible thanks to an announcement today (Feb 7) from the Housing Secretary, outlining plans to cut the costs of some new homes by a third.
The new scheme, First Homes, will encourage first-time buyers to buy a home in their local area as discount prices will be locked into the property for the future.
Homes included in the scheme, will mean an average saving of £100,000 for first-time buyers, with priority given to veterans and key workers such as nurses, police officers and fire fighters.
Deposit and mortgage requirements for local first-time buyers in England will be lowered under this new scheme, which will make home ownership more accessible and shake up the housing market.
The discount will be applied to a proportion of new homes, with a government consultation to decide how the new measures will be delivered.
Housing Secretary Rt Hon Robert Jenrick MP said:
“First Homes will be genuinely life-changing for people all over the country looking to buy their first home.
“I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30 per cent market discount rate – turning the dial on the dream of home ownership.
“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”
First Homes will see a newly-built home, with an average price of £314,000, reduced by 30% - delivering a saving of £94,000.
Going off this figure, this could also take more than £18,000 off a 20% deposit needed to enable first-time buyers to get on the property ladder.
The government has promised to deliver more than one million new homes over the next five years, tens of thousands of which could be built under the First Homes scheme.
The scheme will apply the discount in perpetuity, so when the home is sold in years to come the new local buyer will be able to purchase it at a discount as well.