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Government gives 30% discount for some first time buyers

The government has announced a new scheme to reduce the prices of some properties by up to 30% in order to help first-time buyers to purchase homes in their local areas.  

The First Homes scheme will cut the cost of some new houses by a third, by lowering deposit and mortgage requirements.

The average price of a new home in England is £314,000, under First Homes, a property will be sold with a 30% reduction, saving on average £94,000.

The scheme will apply to a proportion of new homes, the government is yet to consult on how this will be delivered.

Veterans will be prioritised as part of the Armed Forces Covenant and councils will also be able to use the scheme to help employees such as police officers, nurses and teachers.

The scheme will apply the discount in perpetuity, this means that when the house is sold again in the future, the new local buyer will also be able to purchase the house at a discounted price.

Housing secretary Robert Jenrick, MP said: ‘First Homes will be life-changing for people all over the country who are looking to buy their first home.

‘I know that many who are seeking to buy their home in their local areas have been forced out due to rising prices, therefore a proportion of new homes will be made available at a 30% market discount rate.

‘The discount will then be passed on with the sale of the property to future first-time buyers, helping thousands of more people in years to come and ensuring that local communities can stick together.’

Paula Higgins, chief executive of the Homeowners Alliance, said: ‘We know that first-time buyers will welcome the opportunity to buy a good quality home at a discount in their local area.

‘We look forward to contributing to the consultation and working with the government to ensure that the scheme does what it says on the tin, more high quality and affordable local homes for current and future first-time buyers.’

Photo Credit – Pixabay

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