Boris pledge to offer 30% discount to local first time buyers?

gfplux

Will it include new houses or those built after 2009 built on a flood plain that you can’t insure for flooding?

Norman_Castle

"The discount will be paid for through the contributions that housing developers routinely provide through the planning system. These contributions are an established mechanism for ensuring that new developments deliver benefits for local communities. This means that the First Homes scheme will not result in extra building costs."

It will also not result in benefits to the local communities through CIL payments,

https://www.gov.uk/government/news/ensuring-local-communities-benefit-from-development

"Since its introduction in 2010, CIL has provided a faster and fairer means of collecting developer contributions to local infrastructure. This has been done via tariff-style contributions on many large developments within a local planning authority’s area.

Proceeds are typically spent by councils on local infrastructure projects, such as roads and schools and are an alternative to traditional ‘Section 106’ planning obligations negotiated on an application-by-application basis.

Almost 100 councils are now charging CIL and more than 200 councils are working towards introducing it."

So how will the necessary infrastructure costs be covered?

MARTYM8`

Norman_Castle said:

"The discount will be paid for through the contributions that housing developers routinely provide through the planning system. These contributions are an established mechanism for ensuring that new developments deliver benefits for local communities. This means that the First Homes scheme will not result in extra building costs."

It will also not result in benefits to the local communities through CIL payments,

https://www.gov.uk/government/news/ensuring-local-communities-benefit-from-development

"Since its introduction in 2010, CIL has provided a faster and fairer means of collecting developer contributions to local infrastructure. This has been done via tariff-style contributions on many large developments within a local planning authority’s area.

Proceeds are typically spent by councils on local infrastructure projects, such as roads and schools and are an alternative to traditional ‘Section 106’ planning obligations negotiated on an application-by-application basis.

Almost 100 councils are now charging CIL and more than 200 councils are working towards introducing it."

So how will the necessary infrastructure costs be covered?

Council taxpayers of course - you can't expect developers to take the hit as they surely deserve something for all their donations!

snowqueen555

All of the affordable homes currently offered have been for renting and housing associations. I haven't seen a case of a 1st time buyer being able to buy an affordable home

Also considering how tight the budget is, I doubt we will see this in force in any meaningful way.
It sucks if this is only for key workers. I would imagine there would already be a big scramble within that group, meaning normal people like us will not get a sniff.

Getting_greyer

I fall into the key worker group. I'm nor sure if I'd go for one.  The assumptions I've made are that these homes will be the least desirable on the new estate.  Also the pool of people you can sell to when you want to move is smaller.  That's only an issue if you have to move in a short timeline. 

Ultimately I'm nor sure if it's a good thing for the small cohort of key workers who have a deposit and can secure a mortgage.  It will likely have some detrimental effect on non key workers in similar situations. I'm not hanging around to find out though.

Sailtheworld

MARTYM8` said:

Norman_Castle said:

"The discount will be paid for through the contributions that housing developers routinely provide through the planning system. These contributions are an established mechanism for ensuring that new developments deliver benefits for local communities. This means that the First Homes scheme will not result in extra building costs."

It will also not result in benefits to the local communities through CIL payments,

https://www.gov.uk/government/news/ensuring-local-communities-benefit-from-development

"Since its introduction in 2010, CIL has provided a faster and fairer means of collecting developer contributions to local infrastructure. This has been done via tariff-style contributions on many large developments within a local planning authority’s area.

Proceeds are typically spent by councils on local infrastructure projects, such as roads and schools and are an alternative to traditional ‘Section 106’ planning obligations negotiated on an application-by-application basis.

Almost 100 councils are now charging CIL and more than 200 councils are working towards introducing it."

So how will the necessary infrastructure costs be covered?

Council taxpayers of course - you can't expect developers to take the hit as they surely deserve something for all their donations!

It's actually the other buyers on an estate who pay. The councils extort money from the developers before planning is given. The developers aren't charities so the bribe cost is shared between the other buyers. Councils love spending other people's money (just google 'payments over £500' for your local council), so squander it and then plead poverty. 

You've got to hand it to the councils and government - it's almost art how they convince people that it's other people that are paying. I bet people from council planning departments strut home and tell their spouses just how they shafted a faceless developer when the reality they're shafted people in their local area.

silvertooth

Are they going to use the coronavirus crisis as an excuse why they are delaying releasing details of the 30% discount?

or will they need the 30% discount to try to drum up some activity again as volumes fall through the floor

nobody is buying houses in the middle of a pandemic no matter how much you lower the asking prices

silvertooth

There was a big scandal of selling properties as freehold but actually they were lease hold

surely the buyer would have found out

silvertooth

If Boris doesn’t keep his promise of 30% discount for FTBers by the time his baby is born then there will be hell to pay

Getting_greyer

Are they delaying?  They're in the middle of a consultation?