The UK government has released more information regarding its initiative entitled ‘First Homes’.
In a Written Ministerial Statement, Christopher Pincher, Minister of State for Housing, explained the conditions that new properties built and offered under the scheme would need to adhere to.
The statement made it clear that new build properties would be sold with a discount set at 30 percent, to be kept in perpetuity. Homes built under the initiative are to be ringfenced and made available only to first-time property buyers.
The government notification also added that the market price of the scheme’s homes must be kept to £250,000 where properties are outside the boundaries of Greater London, but can be up to £420,000 when within. The total household income of first-time buyers taking advantage of the First Homes initiative must not be more than £90,000 within Greater London and no greater than £80,000 outside.
Homes that are built under the government scheme can also be held by local authorities to be allocated to key workers seeking properties and homebuyers that have a connection to the borough or local area.
The scheme has been described as a creative initiative that has the potential to increase the supply of available housing in the market, rather than simply trying to encourage people in the UK to make a purchase. This is important for the busy housing market, which requires a balance of supply and demand to avoid housing prices continuing to rise.