First Home, according to government details that are now in the press, will help local people buy their first home. The First Home scheme will be targeted at key workers. As the scheme suggests it will be aimed at local first time buyers.
First Home scheme offering 30% discounts for local buyers
It is early days yet to say what the criteria is for such a home. However it looks like there could be a 30% discount for such properties. We don’t yet know if it will just be for new build homes or whether it will be extended to all homes. If it is the latter there will need to be detailed ironed out to say how a property for sale can be classed as being available via the First Home scheme.
There has been an issue, particularly in sought after locations whereby local people have struggled to buy their first home. This is due to rising prices and the fact that they were being purchased as second homes or buy to let opportunities.
Conservative government’s first time buyer scheme criteria needs confirming
It sounds like it could be another great opportunity for first time buyers to get on the property ladder. However, the criteria will need to be clear. For example, how are people classed as local for this First Home scheme. Will it be based on living within a certain radius. Also what sort of employment do you need to be in to meet the criteria.
It also appears that some of the detail around the scheme says that should a local person buy the home they cannot sell it on at a profit to a non-local person. It is early days and the detail of the scheme still needs to be agreed. Therefore, the aim is to be able to sell on these homes to people also in the local area.
Review the current planning process to build First Home scheme properties
If the First Home scheme is for new build properties only they may need to review the current planning laws. This will enable the homes to be built quicker if they can streamline the planning process.
So it could be that the First Home scheme will be another option alongside shared ownership and the help to buy scheme that already exist.