First-time buyers could see cost of new homes SLASHED by a third under new proposals

The Government has unveiled its latest proposals to help first-time buyers and tackle the housing crisis.

Wednesday, 12th February 2020, 9:29 am
New homes were registrations with the NHBC reached their highest point since 2007, but the Government is still falling short of its own targets. (S)

In plans announced by Housing Secretary Robert Jenrick, a new scheme called First Homes would cut the cost of some new homes by 30 per cent.

The scheme would lower deposit and mortgage requirements on a proportion of new homes for local first-time buyers in England. Mr Jenrick said the government would consult on how this will be delivered.

Councils would be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers, and veterans would be prioritised as part of Armed Forces Covenant.

Describing the scheme as “life-changing”, Mr Jenrick said: “I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30 per cent 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 average price of a newly-built home in England is £314,000. The First Homes schemes would provide a discount of £94,000, shaving more than £18,000 off a 20 per cent deposit.

The proposals come as new figures from the National House-Building Council (NHBC) reveal that the number of new homes built each year has risen by more than 80 per cent over the past decade.

Last year, 161,022 homes were registered with NHBC, making 2019 the strongest year for NHBC new home registrations since 2007.

Nevertheless, the rate still falls short of Government targets.

The Government has promised to tackle the housing crisis by delivering more than one million new homes over the next five years.