The Government has announced plans to introduce a ‘First Homes’ scheme for first-time buyers.
The new scheme will see new property prices reduced by up to one-third for first-time buyers, with the Government stating that those who are attempting to get onto the property ladder in their local area will save an average of £100,000.
One of the main aspects of the proposed new system is reducing the cost of the required deposit, with the Government keen to ensure that people don’t have to move away from their hometown to find a suitable and affordable first home.
The new scheme will be funded via contributions to the planning system, with the Government emphasising that there will be no additional costs as housing developers already provide the contributions.
Armed forces personnel are set to be given priority, with councils being urged to allow teachers, nurses, police and other ‘front-line’ workers to also be given priority for the scheme.
Robert Jenrick, Housing Secretary, said: “First Homes will be genuinely life-changing for people all over the country looking to buy their first home.
“I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices.
“The discount will be passed on with the sale of the property to future FTBs, helping thousands more people in years to come and ensuring local communities can stick together.”
The Government has now begun a consultation period as it seeks feedback on the new system, with a focus on a price cap for any properties that qualify for the scheme.
Layna Thompson, an Associate Solicitor who specialises in residential property and conveyancing, said: “Any initiative which helps people take the first step onto the property ladder is to be welcomed although the initiative is still in its early stages with no hint of when this may go live.
“In the meantime, there are still a number of existing initiatives available to first time buyers including help to buy and shared ownership schemes.
“We have also produced a FREE guide to help make the whole process of buying a house for the first time less confusing.”
Our free guide for first time buyers is available to download here and for help and advice on all matters relating to residential property and conveyancing, please contact us.