First Homes Explained
INTRODUCTION TO FIRST HOMES
First Homes is an exciting new government scheme that assists first-time buyers get on to the property market. The scheme also supports those who deliver our local services, such as key workers, NHS staff and veterans, to secure a discounted property.
For those who struggle to afford market prices in their area but want to stay in the communities where they live and work, The First Homes Scheme helps create inclusive and sustainable communities for generations to come.
This policy is part of a government pledge to build one million new affordable and attractive homes in the current Parliament and help place home ownership within reach for more people across the country.
FIRST HOMES CRITERIA
First Homes must be prioritised for first-time buyers
Must not be sold to any household with a combined annual income in excess of £80,000
Individuals who can purchase a First Home without a mortgage will not be eligible
The same level of discount, as a percentage below market value, must apply to the home each time it is sold in perpetuity and this should be secured through a planning obligation
After the discount has been applied, the first sale of the home must be at a price no higher than £250,000 (or £420,000 in Greater London)
First Homes should comply with any other applicable planning policies and/or building regulations, for example those relating to space, accessibility, energy efficiency or carbon emissions
A First Home must be discounted by a minimum of 30% against the market value
THE FIRST HOMES SCHEME PUT INTO PRACTISE
A typical Central Bedfordshire resident, say John Smith from Leighton Buzzard, who earns the average local salary of £35,000 per year is keen to get his foot on the property ladder.
For John, £270,009 for his first home is simply unaffordable and his dream of home ownership unachievable. Fortunately for John, he is eligible for the
First Home scheme and with the 30% discount applied, that property would now cost less than £190,000, reducing the deposit John would have to save by over £80,000.
As qualifying buyers can use the government’s 95% mortgage guarantee scheme, the dream of home ownership can become a reality by securing the property with only a 5% deposit.
With an affordable deposit of only £9,500, the opportunity for first time buyers to continue living and working in their communities, becomes far more attainable.
ALL YOU NEED IS A 5% DEPOSIT
Saving for a deposit can be one of the biggest hurdles for people looking to buy a new home. The First Homes Scheme allows you to purchase a new home with a 5% deposit.
GETTING THE BEST ADVICE
Anyone using The First Homes Scheme to purchase a Mulberry home is entitled to free advice from our recommended independent mortgage advisors. They’ll even help you complete the First Homes application and use their expertise to help find the mortgage that suits you best.