First Homes Scheme

Fufu3333

Anyone know how one can apply for this scheme. 

Would it be through one's local council or through the builders?   
If through builders, how do we find out which builders are taking part in the scheme?

hippocrates1

Don’t think anyone knows yet. 

MovingForwards

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

The key point is you must be a FTB, which you're not.

Fufu3333

MovingForwards said:

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

The key point is you must be a FTB, which you're not.

Thanks for this. Requesting info for first time buyer. Very useful. 

K_S

Fufu3333 said:

Anyone know how one can apply for this scheme. 

Would it be through one's local council or through the builders?   
If through builders, how do we find out which builders are taking part in the scheme?

@fufu3333 From what we've been told, this will be just like buying a new-build through the builder. The lender products that accept the FH scheme will have no issue with the S106 restrictions that the house will come with. 

Here's the RM listing for one of the first set of First Home properties on the market.  https://www.rightmove.co.uk/property/108213308

Imho, demand is going to be tremendously high given the size of the discount. How many FH units can actually be delivered and how these will be allocated (assuming the prices are fixed) will be interesting to see.

Fufu3333

K_S said:

Fufu3333 said:

Anyone know how one can apply for this scheme. 

Would it be through one's local council or through the builders?   
If through builders, how do we find out which builders are taking part in the scheme?

@fufu3333 From what we've been told, this will be just like buying a new-build through the builder. The lender products that accept the FH scheme will have no issue with the S106 restrictions that the house will come with. 

Here's the RM listing for one of the first set of First Home properties on the market.  https://www.rightmove.co.uk/property/108213308

Imho, demand is going to be tremendously high given the size of the discount. How many FH units can actually be delivered and how these will be allocated (assuming the prices are fixed) will be interesting to see.

Thanks for your link.

I agree, K_S, I think there will be a flurry of applications once this is off the ground.  

From calls I have made today to large builders like Taylor Wimpey and Persimmon, it seems like they will not be running this scheme.  Persimmon has said to me it may be running with the smaller builders.  Guess we'll have to wait and see.

Ybe

In some parts of the country, won’t this just cause developers to inflate prices?  Even with the caps. 

RelievedSheff

Some developers already run similar schemes. Taylor Wimpey have their "Step-Up" Scheme for example.

IloveElephants

Hi, does anyone have any more info on this FH Scheme? How do the local decide "connection to the area"? I have "moved to a new area in 2020 and have no connection to the area, the only evidence is a council gym that I have been a member for over 1 year to show I have been in the area. 

Thank you everyone 

K_S

IloveElephants said:

Hi, does anyone have any more info on this FH Scheme? How do the local decide "connection to the area"? I have "moved to a new area in 2020 and have no connection to the area, the only evidence is a council gym that I have been a member for over 1 year to show I have been in the area. 

Thank you everyone 

@IloveElephants With respect to eligibility criteria, there are some firms ones set nationally - eg: FTB, <80k income, etc.

Then there are criteria that the local authority can choose to set - eg: must live/work in the council area, must be a keyworker, etc.

Given the S106 mortgages (the discount, eligibility criteria, etc. of the FH scheme are secured by a section 106 agreement) I've done, if your council has a local connection criteria, generally most will require a 3 year residence history in the area. Or have a permanent job in the area or in some cases even a job offer will do. There can be different variations in local connection criteria so best ask the developer or the council directly for the specifics.

With FH, there is a 3 month clause on the additional local authority criteria, so if an eligible buyer isn't found in 3 months, the property can be marketed based on national criteria. However, it's not clear to me whether the 3 month period applies to initial sales or only when the property is resold. In any case, given how few FH homes are there in the market and the sizeable discount, I would expect these to be in good demand in most areas of the country and unlikely to remain unsold for 3 months.

IloveElephants

K_S said:

IloveElephants said:

Hi, does anyone have any more info on this FH Scheme? How do the local decide "connection to the area"? I have "moved to a new area in 2020 and have no connection to the area, the only evidence is a council gym that I have been a member for over 1 year to show I have been in the area. 

Thank you everyone 

@IloveElephants With respect to eligibility criteria, there are some firms ones set nationally - eg: FTB, <80k income, etc.

Then there are criteria that the local authority can choose to set - eg: must live/work in the council area, must be a keyworker, etc.

Given the S106 mortgages (the discount, eligibility criteria, etc. of the FH scheme are secured by a section 106 agreement) I've done, if your council has a local connection criteria, generally most will require a 3 year residence history in the area. Or have a permanent job in the area or in some cases even a job offer will do. There can be different variations in local connection criteria so best ask the developer or the council directly for the specifics.

With FH, there is a 3 month clause on the additional local authority criteria, so if an eligible buyer isn't found in 3 months, the property can be marketed based on national criteria. However, it's not clear to me whether the 3 month period applies to initial sales or only when the property is resold. In any case, given how few FH homes are there in the market and the sizeable discount, I would expect these to be in good demand in most areas of the country and unlikely to remain unsold for 3 months.

Thank you so much for sharing this info with me, I am going to do my research and come back to this thread. Thank you