First applicants accepted for First Homes Scheme and target of 1,500 homes revealed
Key workers, including a nurse and a police worker, are among the first borrowers to be accepted to the government’s First Homes Scheme as further house building targets for the scheme have been announced.
The scheme, which was launched in June this year with seven lenders signing up, awards a minimum of a 30 per cent discount on market price for first-time buyers and key workers to help them get on the property ladder.
These include Chorley Building Society, Darlington Building Society, Halifax, Leeds Building Society, Mansfield Building Society, Nationwide Building Society and Newcastle Building Society. All are offering 95 per cent loan to value mortgages for the scheme.
The key workers who have signed up to the scheme are from Bolsover in Derbyshire, First Homes is currently in its pilot phase. There are sites in Bolsover, Cannock and Newton Aycliffe are among the first to put homes on the market.
According to an update from the Department for Levelling Up, Housing and Communities, around 1,500 homes will now be built over 100 locations across England by March 2023 following successful bidding by housebuilders.
It comes after Eastleigh Borough Council confirmed plans to deliver 200 First Homes in the borough.
The government has also estimated that around 10,000 First Homes will be delivered across the country by 2027 and 2028.
The housing minister Christopher Pincher said: “This scheme is putting local people first and creating opportunities for young people and families to feel the sense of pride that comes with homeownership.
“We are determined to help more people on to the housing ladder and are providing significant funding to regenerate derelict land, deliver new homes and create prosperous local communities across the country.”
Stuart Miller, chief customer officer at Newcastle Building Society, said that it had seen “significant interest from customers and brokers” in its First Homes products due to the significant discount on the purchase prices, competitive interest rates and low deposit requirements.
He said: “We understand how big a challenge it is to get a foot on the property ladder with rising house prices and limited housing supply which is why we are such big supporters of this scheme and other innovative solutions such as Deposit Unlock where we were the first lender to offer mortgages under the scheme.
“We fully expect that demand for First Homes properties will exceed supply even as the scheme expands and would therefore encourage more innovation from lenders and further government support to help people achieve their dream of home ownership.”