Due to years of house prices rising, many younger buyers have put homeownership out of their minds. The current housing boom, fed by stamp duty tax breaks, has caused double-digit annual price growth and subsequently leaving more first-time buyers left behind. Applicants who can afford to buy a First Home without a mortgage will not be eligible, the government is making sure the homes go to local communities and don’t get bought up as investments.
The First Homes initiative is targeted at first-time buyers only, if a household has a combined annual income of £80,000 (or more than £90,000 in Greater London), applicants won’t be accepted. Some local councils will be able to set some of their requirements, these could be prioritizing key workers or locals.
Price caps will also be enforced, this means that after the discount has been applied, the buyer won’t be required to pay more than £250,000 (or £420,000 in Greater London). Councils will be able to make the case for imposing lower price caps in individual circumstances, however.
Friday the 4th of June saw the initial First Homes properties on the market in the opening phase. These were situated in Bolsover, Derbyshire. More homes will be available to first-time buyers through the scheme as time passes. A further 1,500 homes are expected to come on the market in the autumn, and then another goal is to have “at least 10,000 homes a year being delivered in the years ahead, and more if there is demand”.
Housing secretary Robert Jenrick stated, “First Homes will offer a realistic and affordable route into homeownership for even more people who want to own their own home.”
Looking for a new home in Plymouth? Let us know your thoughts on the new First Home initiative!