Further details on the government’s ‘First Homes’ initiative have been outlined by the Minister of State for Housing, Christopher Pincher.
In a written ministerial statement, he said that the homes built under the ‘First Homes’ scheme had to adhere to a number of conditions, such as being ringfenced for first-time buyers, while new builds must also be sold at a perpetual 30% discount.
In addition, the market price on homes is to be capped at £250,000 outside of Greater London, but rising to £420,000 within, and the household income of those taking advantage of the initiative must not exceed £80,000 outside of Greater London, or £90,000 within.
Local authorities are also able to set aside the homes for key workers and those with a connection to the area.
Nathan Emerson, CEO of Propertymark, said that the homes were ‘a creative initiative’ that could work because it was upping the supply of property in the market, and not just encouraging people to buy.
He added: “That is key because we have a very busy market right now, full of hungry buyers, and there is a danger that introducing more buyers without increasing supply could further push the supply and demand out of balance, meaning house prices would continue to rise.”