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Discover new housing developments under the First Homes scheme. Learn how to apply and check your eligibility today!
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What is the First Homes Scheme?
The First Homes scheme is a government-backed initiative designed to help first-time buyers in England purchase affordable homes. It offers significant discounts of at least 30% off the market price of new-build properties, with discounts increasing to up to 50% in areas where house prices are particularly high.This programme aims to make home ownership more accessible, especially for key workers like teachers, nurses, and police officers, as well as local residents who might otherwise struggle to afford a home in their area.One of the unique aspects of the First Homes scheme is that the discount applies not only when you buy the property but also when you sell it. This ensures that homes remain affordable for future generations of first-time buyers.
Key Benefits of the Scheme
The First Homes scheme offers several advantages that make it an attractive option for first-time buyers:Significant Discounts: Save 30%-50% on the market price of eligible new-build homes.Smaller Deposits: With lower property prices, your deposit and mortgage repayments will be much more affordable.Full Ownership: Unlike shared ownership schemes, you own 100% of your home.Lifetime Discount: The discount applies every time the property is sold, ensuring affordability for future buyers.Local Priority: Many councils prioritise local residents and key workers, helping them stay within their communities.
How Does the Scheme Work?
The process for buying a home under the First Homes scheme is straightforward:1. Developers build homes specifically designated under this scheme.2. These homes are sold at discounted prices based on independent valuations.3. Buyers must meet eligibility criteria (explained below) to qualify for the discount.4. Once purchased, the property must be used as your main residence—it cannot be rented out or used as a holiday home.When selling a First Home in the future, the same percentage discount will apply to its resale price. This ensures that the property remains affordable for other first-time buyers.For example:
If a home has a market value of £300,000 and you qualify for a 30% discount, you would pay £210,000. If you later sell this home and its market value has risen to £330,000, you would need to sell it at £231,000 (still applying the 30% discount).
Who is Eligible?
To qualify for the First Homes scheme, you must meet these national eligibility criteria:- Be a first-time buyer (you must never have owned or inherited property before).- Be aged 18 or older.- Have a combined household income of £80,000 or less (£90,000 in London).- Secure a mortgage covering at least 50% of the discounted price of the home.Local Eligibility Criteria:
In addition to national requirements, local councils may set their own eligibility rules. These might include:- Prioritising key workers such as teachers, nurses, police officers, and firefighters.- Giving preference to residents with strong local connections (e.g., living or working in the area).- Setting lower income caps or additional restrictions.
How Do You Apply?
Applying for a home under this scheme involves these steps:1. Search for Eligible Properties:
Look for homes advertised by developers or estate agents as part of the First Homes scheme.2. Check Your Eligibility:
Submit an application to confirm that you meet both national and local eligibility criteria. This may involve providing proof of income, employment status, and mortgage approval.3. Work with Local Authorities:
Once your eligibility is confirmed, work with your local council and developer to finalise your purchase.4. Secure Financing:
You’ll need to secure a mortgage covering at least 50% of the discounted price.5. Complete Your Purchase:
Once all steps are complete, you can move into your new home!
Frequently Asked Questions
Q: Can I use other schemes like Help to Buy with First Homes?
No, but you can use savings tools like Lifetime ISAs or Help-to-Buy ISAs alongside this scheme to save money for your deposit.Q: What happens if I want to sell my First Home?
You must sell it at the same discounted rate (e.g., 30%-50%) to another eligible buyer under the scheme rules.Q: Are there limits on property prices?
Yes:Properties cannot exceed £250,000 after discounts outside London.In London, properties cannot exceed £420,000 after discounts.
Local councils may set lower price caps depending on their policies.Q: Can I rent out my First Home?
No, properties purchased under this scheme must be used as your main residence and cannot be rented out or used as holiday homes.
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