The First Homes Scheme has been making waves in the UK’s housing market, promising a more affordable route to homeownership for first-time buyers. In this article, we’ll explore what the scheme entails, its benefits, and how it works.
Is the First Homes Scheme Worth It?
The First Homes Scheme is undoubtedly worth considering for first-time buyers looking to own their homes. Here’s why:
Discounted Prices: First Homes are sold at a minimum discount of 30% compared to the market price. This can significantly reduce the upfront cost of buying a property.
Long-Term Affordability: The discount remains with the property, not the buyer. So, when you decide to sell, the next buyer will also benefit from the discount, ensuring long-term affordability.
Wide Availability: The scheme aims to increase the supply of affordable homes across the country, offering a broader range of locations for buyers.
How Does the First Homes Scheme Work?
The First Homes Scheme primarily targets local first-time buyers. Here’s a simplified breakdown of how it works:
Eligibility: To qualify, you must be a first-time buyer, live or work locally, and have a combined household income below £80,000 (or £90,000 in London).
Discount: The property is sold with a discount of at least 30% off the market value. This discount applies to both the purchase price and the future resale price.
Ownership: You will own the property outright, just like any other homeowner. There’s no shared ownership or rent involved.
Resale: When you decide to sell, the property is marketed at the same percentage discount you purchased it with, ensuring affordability for the next buyer.
What is a First Homes Scheme Property?
A First Homes Scheme property is simply a home available through the First Homes Scheme. These properties are often newly built and can include houses and apartments. They are sold with a discount, as explained above, to make them more affordable for eligible buyers.
The First Homes Scheme is a promising initiative for first-time buyers seeking affordable homeownership. With its significant price discounts and long-term affordability, it’s a valuable option for those looking to step onto the property ladder. To explore available First Homes Scheme properties, check with local housing authorities and developers in your area.