First-time buyers in England, in particular key workers, will have the chance to buy homes within their local area for a discount under the government's First Home Scheme launched this month.
The scheme will offer selected new build properties (houses and flats) to first-time buyers for between a 30% and 50% market discount. This discount is 'for keeps' and must be applied to all subsequent purchasers.
Based on the current average price of a new build property across England, prospective purchasers could save close to £70,000 based on a 30% discount, and nearly £115,000 if a 50% discount is applied.
Local Authorities can define 'local connection' and are expected to prioritise key workers. There are limits on buyer income, maximum purchase price post discount and a minimum 50% mortgage will be required. Source: Dataloft, UKHPI, based on average price of a first-time buyer home March 2021, UKHPI