First-time buyers can now avail themselves of a 30 percent discount on their new home! In an effort to boost the housing market and increase the buyer’s confidence, the UK government has announced a special scheme known as the First Homes scheme for first-time buyers.
Under this scheme, first-time buyers can save up to a whopping 30 percent on the sale price of their new build home. Should you apply for the First Homes scheme? Yes, of course! If you are a first-time buyer who is interested in making the most of this scheme, get in touch with estate agents and letting agents in Cheltenham today! Here is everything that you need to know about the first-time buyer scheme.
How does this scheme work?
The First Homes scheme allows first-time buyers in the UK to get a 30 percent discount on the market value of new-build homes. The maximum cap price for the homes in question is £250,000, after the 30 percent discount. In London, the maximum price has been capped at £420,000 after the discount. It is just as simple as that.
Who is eligible for the First Homes scheme?
Only first-time buyers can make use of the First Homes scheme, as the name suggests. Also, in order to be eligible, the household earning of the potential buyer needs to be below £80,000. For potential buyers living in London, the household earning needs to be lower than £90,000. Also, it is essential for the buyer to take out a mortgage of at least 50 percent of the total value of the property, or more.
Who is given preference under this scheme?
Technically, any first-time buyers who fulfill the above-mentioned criteria can make use of the First Homes scheme. It is not necessary that only local buyers can apply for the scheme. However, the scheme aims to provide affordable housing to those people who are struggling to pay the ever-rising house prices in their area.
So, the preference will probably be given to locals who have their place of work in the area. Also, key workers and essential workers such as teachers, front-line workers, delivery people, nurses, and other such important workers will be given preference under the First Homes scheme.
Which banks and building societies are a part of this scheme?
There are many well-known banks, lenders, and building societies that are a part of this scheme. Darlington Building Society, Leeds Building Society, Mansfield Building Society, Newcastle Building Society, and Chorley Building Society are some of the many that have signed up for this scheme.
Why did the government start this scheme?
In the coming years, the UK government plans to introduce at least 10,000 new properties in the housing market. By 2024, the UK government aims to provide at least 1 million affordable homes to the citizens.
Essentially, the First Homes scheme allows first-time buyers to climb aboard the property ladder and fulfill their wishes of owning a home. Also, this scheme is an affordable way to allow homeownership, hence boosting the housing market in the UK as well as the economy as a whole.
How many homes are available under the First Homes scheme?
The UK government claims that 1500 homes will be ready for sale under this scheme by the end of 2021. In the coming years, the government plans to add at least 10,000 homes that can be bought using the First Buyers scheme. As of now, the first property that was sold under this scheme was in Bolsover, which is located in the East Midlands.
How can you apply for the First Homes scheme?
Currently, there is no website or portal where potential buyers can apply for this scheme. Basically, first-time buyers need to do their research and find out which developers in the area are a part of the First Homes scheme. Once they find the developers in the area, potential buyers have to apply directly to the developers.
What happens if I sell the property I bought using this scheme?
If a first-time buyer decides to sell the property that he or she bought using the First Homes scheme, then the discount is passed on to the next buyer. However, since this scheme is relatively new, not too much information is known about the resale of such properties.
So, should I apply for the First Homes scheme?
If you are a first-time buyer who is looking for affordable housing, then this scheme is ideal for you. If you have always dreamt of owning a home that you can call your own but were unable to purchase a property because of the high prices, then this 30 percent discount can help you save a whole lot of money.
Also, in special cases, developers and lenders can even allow a discount of up to 50 percent, as long as the applicant can give a reasonable explanation as to why they require the increased discount. At the end of the day, the First Homes scheme makes homeownership affordable and achievable, which is great for first-time buyers in the UK.