The Ministry of Housing, Communities and Local Government (MHCLG) has invited housebuilders in England to apply for the financing through Homes England, allowing them to offer plots for sale as First Homes to support the scheme’s roll out.
First Homes are aimed at first time buyers and key workers and will be sold at a market discount of at least 30%. This percentage reduction will remain in perpetuity.
MHCLG said the contract award being offered under an “Early Delivery Programme” will allow housebuilders to engage with local authorities and mortgage providers, understand the expected level of customer demand for the discount market homes and glean more information about the delivery process ahead of the scheme’s full implementation through planning.
When First Homes are fully launched, they should account for at least 25% of all affordable housing delivered through planning obligations.
Ministers are aiming to oversee the delivery of 1,500 First Homes by March 2023. Under the pilot, two sites have launched, as part of Keepmoat Homes’ scheme in Bolsover, East Midlands, and Vistry Partnerships’ development in Cannock, West Midlands.
Leeds Building Society has recently received the first mortgage application for a First Homes property. The first sale of a First Home must be no higher than £250,000 - £420,000 in Greater London.
Housing secretary Robert Jenrick said:
“It is great to see the First Homes scheme gaining momentum and I am happy to invite housebuilders to deliver this flagship housebuilding programme across the country.”
Peter Freeman, chair of Homes England, added:
“The Early Delivery Programme is a great opportunity for housebuilders, housing associations and the wider development sector to get to grips with First Homes. We look forward to working with partners to help aspiring home owners realise their ambitions and own their own home.”
