First Homes – at up to half price
On 4th June 2021 the Government launched a new affordable housing scheme known as the ‘First Homes Scheme’.
The First Home Scheme entitles first-time buyers who live in a household with a combined income of £80,000 or less (£90,000 in London) to purchase a new-build property with a 30%-50% discount.
The level of discount will depend on circumstances/local authority discretions. Purchasers must have local connections (ie work or live there) and/or have key-worker status as determined by the relevant local authority.
The same level of discount must be passed with all future sales of the property and will be included as a restricted resale provision within the HM Land Registry title register. For example, a house with a full market value of £100,000 can be purchased with a 30% discount for £70,000. When the property is next sold, if its full market value is £200,000 it must be sold with a 30% discount for £140,000.
There will also be a ‘post-discount value cap’, meaning only properties up to the value of £250,000 (or £420,000 in Greater London) are eligible.
Critics arer warning that this may just be another headline-grabbing Government PR wheeze that will only help a small handful of super-lucky buyers and boost the profits of housing developers whilst inflating prieces for everyone else.
For more information, please refer to https://www.gov.uk/government/news/discounted-homes-for-key-workers-and-local-residents-as-flagship-first-homes-scheme-launches
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