The government has announced plans which it claims will cut the cost of some new homes by a third.
Housing Secretary Robert Jenrick explained that First Homes will see a discount locked into the property to ensure more first-time buyers benefit in years to come. Local people unable to afford a home will be able to buy in their area, rather than be forced to look elsewhere by rising prices.
Jenrick claimed the scheme will lower deposit and mortgage requirements for local first-time buyers in England. The discount will apply to a proportion of new homes, with the government consulting on how this will be delivered.
Veterans will be prioritised as part of Armed Forces Covenant and councils will also be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers.
Jenrick said: “First Homes will be 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. A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership.
“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.
“The average price of a newly-built home in England is £314,000. Under First Homes, a property sold with 30% off this price would deliver a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit.”
Jackie Bennett, director of mortgages at UK Finance, added: “Buying a home locally can be a big consideration for house buyers, but sometimes the prices are simply out-of-reach.
“So the First Homes scheme is a great initiative by the government to fix this problem and we are looking forward to working with them to finalise the details and help house hunters become home owners – in their own neighbourhood.”