First Homes initiative- can someone explain it to me?

namieco

My mum sent me this article: https://www.theguardian.com/money/2021/jun/04/first-time-buyers-in-england-offered-new-homes-at-up-to-50-off
Me and my husband seem to be eligible. We are renting, are trying to save for a deposit, earn under 80k p.a. combined and won't be buying as an investment. But I can't figure out for sure if we qualify, what to do, and what it means.
Can someone explain it to me like I'm 5? I don't want to get excited and then find out there's a catch or we don't qualify as we are not key workers, or something.
Thanks!

hippocrates1

Catch is that they’re incredibly difficult to get a mortgage on and very hard to find. Then once you sell you will have issues too. 

AdrianC

Unless you're in Bolsover, it's academic currently.

https://www.gov.uk/government/news/discounted-homes-for-key-workers-and-local-residents-as-flagship-first-homes-scheme-launches

Have a go through this, if you haven't already...
https://www.ownyourhome.gov.uk/

Irishpearce26

Having looked at the government website when you sell one of these properties you can only sell to first time buyers and have to pass the discount received onto them?

namieco

Quick replies, thank you!
Glad I didn't get too excited. We are already doing the LISA and will look into the 5% deposit scheme instead. 
While I'm here, any catch with the 5% deposit scheme?

edgex

Irishpearce26 said:

Having looked at the government website when you sell one of these properties you can only sell to first time buyers and have to pass the discount received onto them?

Which is increasingly how these schemes work. There's a few in London already.

You buy at X% of local market value, & when you sell, you sell at the same X% of market value.
Which means that you still get the benefit of any increase in the market, but there isn't a loss of cheaper housing stock.