Last week, the first properties went onto the market in the East Midlands as the initial phase of the Government’s ‘First Homes’ scheme. This latest initiative has been designed to help local people onto the housing ladder. Coinciding with this is the launch of the ‘Own Your Home’ campaign, highlighting all the support available to purchasing your first home.
First Homes will offer a discount between 30% and 50% compared to the market value (up to £250,000, or £420,000 in London), providing the opportunity for local first-time buyers, keyworkers, and those in the Armed Forces to remain in the communities where they live and work. The same percentage will be passed down to future first-time buyers, benefitting generations to come. Councils are able to define their own keyworkers, determining which sectors should be prioritised as essential within their areas based on local needs.
Although currently in early delivery in Derbyshire this summer, further new build sites are set to launch across England, with 1,500 in autumn, and at least 10,000 a year moving forwards. This scheme is part of the Government’s wider plan to build 1m new homes by 2024, helping to put affordable home ownership within reach.
Following the 95% mortgage guarantee, major lenders and building societies announced that they will be offering high loan-to-value mortgages on First Homes in order to support the scheme. Buyers earning a household income of £80,000 or more, or not requiring a mortgage, will not be eligible for a First Home.
Adam Barker, Company Director, shares his thoughts on the scheme:
“It’s great to see a continued push to getting buyers onto the property ladder, and while the first home scheme is only in its infancy, it should hopefully offer more stimulation to a housing market that has continually been short on affordable stock for many years.
However, locally, the increase of more mortgage products being made available for buyers to to take advantage of, and with the low interest rates currently on offer, will be more beneficial.”
If you’re a first-time buyer looking to get on the ladder, please get in touch with Orchards on 01525 40 22 66 or email sales@orchards.co.uk.
