The new programme will cap the price of new affordable homes at £250,000, or £420,000 in London
First-time buyers (FTBs) are braced to get their hands on new houses which will have at least a third off – but a mere 12 will be up for grabs at first.
The new programme will cap the price of new affordable homes at £250,000, or £420,000 in London – but only for those on low incomes.
It will mean Brits can get up to 50% off market value – saving buyers an estimated average of £100,000.
Housing Secretary Robert Jenrick hopes to be able to put 1,500 home up by the end of the year, with developers forking out the upfront costs.
But the initial pilot today will see a scramble for just 12 homes in Bolsover.
The scheme aims to help young Brits get onto the property ladder as house prices continue to soar – putting it out of reach for many.
The prices will be set by independent valuations, and housebuilders forking out for the discount out of the profits that they make.
And the discount will be passed on when the owner sells the home, meaning more lower income Brits will be able to benefit in years to come.
They will have a minimum of 30% off, but developers could offer even more to tempt them to be snapped up.
High street lenders including Lloyds and Nationwide announced that they will offer new high loan-to-value (LTV) mortgages to support the programme.
But Rightmove’s Director of Property Data Tim Bannister said last night that demand was likely to far outweigh the supply until the scheme gets underway.
He said: 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.
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