Rightmove warns that first-time buyers will need to act fast to secure a home under the Government’s new First Homes scheme due to dwindling supplies.
For more home advice visit our property advice channel
The new scheme which launches this month, promises to help first-time buyers onto the property ladder by offering new-build homes at half price. First-time buyers will be able to apply for a discount of a minimum of 30 per cent and up to 50 per cent.
The scheme is part of the Prime Minister’s affordable homes pledge and is being tested in Bolsover Derbyshire, before being rolled out across the rest of England on the 28th of June.
It is aimed at buyers looking for new build homes locally, many of whom will be key workers such as NHS staff and keyworkers. However, Rightmove’s Director of Property Data Tim Bannister warns that there will be fierce competition for properties available on the scheme, and some eligible buyers might be disappointed.
Rightmove First Home scheme warning
‘There’s likely to be a scramble for properties under this scheme as they become available, especially as we’ve already seen an influx of first-time buyers enter the market recently, helped by more lower deposit mortgages being available,’ explains Tim Bannister.
‘Based on current available stock levels it’s unlikely there will be enough of these properties to satisfy the high levels of demand, so eligible buyers will need to get in quick to have the best chance of securing one.’
There are perks to the scheme, including helping first-time buyers to invest in larger properties. ‘The scheme could help level up the playing field for buyers in areas where there’s strong competition between first-time buyers and buy-to-let investors, and could help some people bring their plans forward or buy a bigger home than they were originally expecting to,’ he adds.
The last year has seen a huge demand on properties for first-time buyers, helped on by the Stamp Duty holiday. Currently, the first-time buyer sector of the market makes up about a third of property sales, and buyer demand is up by 62 per cent from last year.
Many experts are also concerned that the scheme could help stoke already rocketing house prices which are at a record average of £333,564. Average house prices in Bolsover where the scheme is launching are £168,782, 28 per cent higher than five years ago.
‘First Homes will offer a realistic and affordable route into homeownership for even more people who want to own their own home,’ says Robert Jenrick, the housing secretary.
You can check if you are eligible for the scheme at via the government website.
However, you might want to act fast if you want to take advantage of it.