The Government has announced plans to proceed with the First Homes scheme aimed at helping more First-Time Buyers to step onto the property ladder.
The scheme will lower deposit and mortgage requirements for local First-Time Buyers in England – with the discount applying to a proportion of the new home.
The average price of a newly-built home in England is £314,000, but under the First Homes scheme, the Government suggested a property sold with 30% off this price would deliver a £94,000 saving – adding this could enable First-Time Buyers to get on the ladder faster by taking more than £18,000 off a 20% deposit.
The Government has also indicated a commitment to delivering more than one million new homes over the next five years to further improve the affordability of housing.
“A proportion of new homes will be made available at a 30% market discount rate – turning the dial on the dream of home ownership. The discount will be passed on with the sale of the property to future First-Time Buyers, helping thousands more people in years to come and ensuring local communities can stick together.”
The latest figures showed the number of First-Time Buyers has reached 357,090 – an 11-year annual high and an increase of 84% since 2010 – while the percentage of homeowners between the ages of 25 and 34 has grown from 36% to 41% in the last five years.