📢 'FIRST HOME' NEW GOVERNMENT SCHEME!: Introduced last Friday, new initiative is offering First-time Buyers homes at up to 50% off!! 🤝
The initial 'First Homes' properties went on the market last Friday in Bolsover, Derbyshire - here's all you need to know: 👍
➡ Introduced last week, the 'First Homes' scheme is designed to get more people on the housing ladder by offering at 30-50% discount! 👍
➡ Scheme is for First-time Buyers (FTBs) with a combined annual income of less than £80,000 📊
➡ Available on new builds only 🏡
➡ Private developers will ring-fence 25% of properties for buyers who qualify🥇
➡ Discounts for FTBs buying in the area they currently live or work (the Government will top-up the difference) 💰
➡ Local authorities will be able to prioritise who qualifies and can even award 20% extra discount depending on individual circumstances (totalling 50% discount)!
Aimed at keyworkers such as NHS staff and those on the pandemic frontline 🚑
➡ Any discounts will be passed on when the property is next sold, meaning the homes will always be below market value 📉
➡ More new homes will be offered across the country in the coming weeks 🔮
➡ Government aiming to fund at least 10,000 homes a year, and more if there is demand 💹
➡ Scheme capped at £250,000 after the discount has been applied 🚫
❌ Downside? Critics say that it's likely demand will exceed supply, sparking a scramble for properties which will add more fuel to the house price boom ⛽
🙋♀️ What other government home ownerships are there?
1️⃣ 95% Mortgage Guarantee Scheme
2️⃣ Help to Buy: Equity Loan
3️⃣ Shared Ownership
4️⃣ Help to Build
🔍 For more information on these, click the full article here (last 4 paragraphs) 📖
🙋♂️ Are you a FTB looking to get your foot on the property ladder?
Contact us and we'll give you the BEST advice on any of these initiatives and up-to-date advice on the buying process, deposits and mortgages ✅
#cavendishexperts #firsthomebuyer #firsthome #ftb #propertymarket #newbuildhomes Leeds Building Society Robert Jenrick Rightmove Newcastle Building Society
Comment and Analysis below:
💬 Sam Barker, General Manager at Cavendish Residential (Estate and Lettings Agency in Nottingham):
Whilst fantastic news for first time buyers I think it certainly raises a couple of questions for me;
1) How can they police discounts being taken into account for re-sales- who is stopping a homeowner from simply selling as they see fit- land registry involvement maybe?
2) Do the government not consider £79,000 as a joint income to be good earnings?? Despite high rental figures gathering deposit funds seems very possible on such salaries don't you think?
However that being said look forward to seeing how well it rolls out getting deserved people on the ladder that at the moment may be hugely out of reach!
💬 Ali Baylav, Managing Director at Cavendish Residential (Estate and Lettings Agency in Nottingham):
Yeah very valid points Sam - no-one really knows how this will work itself over the years, if I had to guess: 💭
Yes, everything will be recorded from day one and will be part of the conveyancing on re-sale 📜
NOTE: The property MUST be re-sold to a new FTB that is also using the 'First Home' scheme - but does this mean the scheme will have to run for generations?! I guess if they stop the initiative the property would sell to ANY buyer who would benefit from the same saving 💰
YESSS, £79k is a HUGE joint income - how they're classing these earners as LOW-INCOME WORKERS I'll never know! 🤷♀️
I'm assuming this is where the 'selection' process from the council begins... Local authorities will 'choose' buyers on their individual circumstances, the thinking being that they'll select the FTBs that need the most support 🆘
For example, some authorities may give key workers or people who pass the 'local connection' test, first dibs. Local connections may include current residency, employment, family connections or caring responsibilities 🤗
After 3 months of the home going on sale, extra conditions set by the local authority will be removed for any 'First Homes' which haven’t been sold or reserved ✅
Posted 10 June 2021
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