Fears Harrogate first-time buyers will still struggle despite new 50% discounts scheme

There are fears many first-time buyers will still struggle to afford Harrogate's high property prices despite a new scheme offering up to 50% discounts.
The average property price paid in Harrogate last year rose to £395,526.The average property price paid in Harrogate last year rose to £395,526.
The average property price paid in Harrogate last year rose to £395,526.

First Homes is a national scheme and aims to support the sale of new homes to people in the district which is one of the most unaffordable places to live in England, with average house prices around 11 times average incomes.

Discounts of at least 30% can be knocked off market prices under the scheme, but councils can increase this to either 40% or 50% if they can "demonstrate a need".

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The scheme has been hailed by government as a move to help people get on the property ladder, many of whom will be key workers such as NHS, care home and supermarket staff.

But with the average property price paid in Harrogate last year rising to £395,526, there are fears that the current housing boom and years of rising prices will mean home ownership will still be out of reach for many - even with the top discounts.

Harrogate Borough Council has backed the scheme but described it as "problematic" and said it is "highly unlikely" that first-timer buyers will be able to afford new builds in the district.

There are also further concerns that the scheme will slow the delivery of much-needed rental homes which around 1,800 Harrogate district households have registered for.

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This is because First Homes requires housebuilders to nominate a proportion of their properties for sale discounts - and this could mean renters miss out.

Councillor Pat Marsh, leader of the opposition Liberal Democrat group on the council, said it is these households which can only afford to rent that are in the greatest need.

She said: "Our residents needing affordable rented homes will lose out and Harrogate will suffer from not having the mix of residents that will sustain our economy and fill our important key worker roles.

"We question whether this is the most effective way of meeting overall needs if it displaces other tenures which are needed."

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The scheme is for first-time buyers only and households with a combined annual income of more than £80,000 cannot apply.

There are also price caps which mean that after the discount has been applied, the buyer cannot be required to pay more than £250,000.

Those who can afford to buy a First Home without a mortgage are not eligible, and there are further measures aimed at preventing people buying the homes as an investment.

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The scheme launched last year and has recently been backed by Harrogate Borough Council which said it would publish more information online and use it as a tool to decide planning applications.

Speaking when the scheme launched, former Housing Secretary MP Robert Jenrick said: "First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.

"These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community."

By Jacob Webster, Local Democracy Reporter