Houses with “locked-in” 30 per cent discounts for first-time buyers are due to go on the market.
The Ministry of Housing said the discounted houses will be available to first-time buyers for almost a third off compared with the market price, with councils also able to prioritise front-line workers looking to get on the property ladder.
‘Enabling more people to buy their own homes is at the heart of the mission of this Government’
The discounted 30 per cent will then be passed on with the sale of the property to future first-time buyers, which means that homes will always be sold below market value to later generations, the department has said.
Officials said that councils will be able to prioritise the homes for key workers, such as nurses and teachers, who have been looking to get on the housing ladder while also supporting their local communities through the Covid pandemic.
The Government will allow each individual local authority to set a local connection test in order to determine who should be prioritised for the scheme.
The First Homes scheme is part of Prime Minister Boris Johnson’s administration’s ambition to build one million new affordable homes during this parliament.
The concept will first be available to buyers in Bolsover, with further sites then set to launch across the country in the coming weeks.
Officials said a further 1,500 will enter the market from the autumn, with at least 10,000 homes a year being delivered in the years ahead – and more if there is demand.
Mr Jenrick said: “Enabling more people to buy their own homes is at the heart of the mission of this Government, and First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.
“Thanks to First Homes, we will offer more homes to local people and families, providing a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices.
“First Homes will also support our fantastic key workers who are looking to get their first foot on the housing ladder – from front-line doctors and nurses to delivery drivers and supermarket staff – by giving many of them the chance to buy a home at a 30% discount.
“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.”
‘Home ownership can often feel out of reach for first-time buyers’
Major high-street lenders Halifax and Nationwide Building Society, along with local building societies and community lenders, have announced that they will be offering high loan-to-value mortgages against First Homes to support the rollout.
Andrew Haigh, chief executive at Newcastle Building Society, which is one of those committed to providing loans, said: “Home ownership can often feel out of reach for first-time buyers – especially those without access to the bank of mum and dad.
“We’re committed to delivering innovative ways to help first-time buyers find affordable and sustainable ways to own their own home.”