Housing secretary Robert Jenrick has revealed government plans for a ‘First Homes’ scheme offering first-time buyers new homes at prices discounted by a third. The buyers are expected to save on average almost £100,000, which means lower mortgage requirements and deposits.
However, despite the initiative being welcomed by the Home Builders Federation, there are concerns that it would come at the expense of the provision of new social housing under the Section 106 agreement such as Shared Ownership, Affordable Rent and Social Rent. The housing spokesman, David Renard, said that although home ownership was important it should not come at the expense of providing “truly affordable homes for rent”.
This programme is part of the government’s commitment to delivering more than one million new homes over five years to make housing more affordable. Last year more than 240,000 homes were built.
First Homes is not a successor scheme to Help to Buy, an equity loan scheme which is set to be dismantled in 2023.