Whether it is because of work, friends or family many first-time buyers would love to buy in their local area. The First Homes scheme is looking to make that possible. This scheme has been created to help first-time buyers stay local and make that first step onto the property ladder.
First Homes are just like normal, open market homes, but they are offered for sale at a significant discount of at least 30% on the market value. The maximum price of a First Home, after the discount has been applied, will be £250,000 (£420,000 in London). Local authorities can set lower price caps.
If I’m buying with a partner, do they also have to be a first-time buyer?
Yes. If the First Home is being bought by more than one individual, all purchasers must be first-time buyers, in keeping with the definition of a first-time Buyer as set out in paragraph 6 of schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief.
Can one member of a couple buy the home on their own, and would this mean the other does not have to be a first-time buyer?
Couples who are married or in a civil partnership or living together should apply jointly to the First Homes scheme. In exceptional circumstances, where the mortgage lender will only lend to one applicant (e.g. because one party has an adverse credit history) the local authority can consider approving on a case-by-case basis, but this is still subject to both parties meeting the first-time buyer criteria. Both parties would therefore need to sign the first-time buyer declaration.
Is anyone exempt from having to meet the local connection criteria?
Yes. Members of the Armed Forces and recent veterans (who have left the Armed Forces within the past five years) are exempt from needing to meet any local connection or key worker restrictions set by local authorities.
These restrictions will also not apply to bereaved spouses and civil partners of servicemen and women whose deaths have been wholly or partly caused by their service. In such cases, all other eligibility criteria, including first-time buyer status and the household income caps, would still have to be met.
For more information about the First Homes scheme, including detail on the application process, please speak to our sales teams. If you're interested, you can find out more information about the First Homes scheme.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
All images are used for illustrative purposes only and are representative only. They may not be the same as the actual home you purchase and the specification may differ. Images may be of a slightly different model of home and may include optional upgrades and extras which involve additional cost. Individual features such as windows, brick, carpets, paint and other material colours may vary and also the specification of fittings may vary. Any furnishings and furniture are not included in any sale. Please check with our sales consultants for details of the exact specifications available at the development(s) for each type of home and the associated prices.