New Gov Discount Scheme Launched to Help Buyers

House prices have been rising for decades, leaving most first-time buyers with a mountain to climb to get on the property ladder. Throughout this period, the government has often stepped in with initiatives aimed at easing entry to the market for new buyers.

The latest of these is the First Homes scheme, which gives a 30% discount on new builds. This discount can be increased by local councils to up to 50%, such as in areas where property prices are very high. The scheme began being marketed over the summer of 2021, and the government will be funding a further 1,500 homes to come to the market from the beginning of 2022.

How does the First Homes scheme work?
The First Homes scheme involves the building of new homes specifically to be sold at a discount. These properties must be purchased by first-time buyers. If buying as a couple, neither partner can have previously owned a home. Otherwise, the properties are bought and sold in the normal way.

• You get up to 30% off the price of a home, which you don’t have to pay back later
• You need to buy in your local area, which is aimed at you avoiding getting priced out of your own community
• You won’t need to borrow or put down as much money
• The discount will also apply when you sell, meaning you can only sell to first-time buyers
• Carries a property price cap of £250,000 in England (rising to £420,000 in London) after the discount is applied

We have access to a number of lenders both in and out of the First Home Scheme who can help finance your first home purchase, many willing to provide 95% loan-to-value mortgages, to learn more contact our senior broker Danny O’Keeffe on 0208 364 3444 or book a time slot using the schedule a call back button below.