A recently launched government scheme aims to make life easier to enable first time buyers to purchase a discounted new build property, provided they meet certain criteria. The discount applied on the first sale is to last in perpetuity so that the future owners will also benefit in the discounted value.
A First Home is a type of discounted market sale housing to meet the definition of ‘affordable housing’ for planning purposes and will be secured by a relevant S.106 Agreement in place for the development.
There are five main points developers need to consider with the First Homes Scheme:
- The minimum discount.
- The eligibility criteria.
- The legal restriction on title.
- The price cap.
- Planning considerations and the S.106 Agreement.