A new version of affordability

The government is currently in a consultation period regarding First Homes. This is an initiative to significantly improve the affordability of housing for local first-time buyers, forces veterans and key workers such as nurses and teachers.

The key principle is designated new homes will be sold at a minimum of a 30% discount to market value. The exact level of discount will be set by the local authority and once fixed will remain in perpetuity on that property. 

So the owner buys at a 30% discount but must sell at a 30% discount after an independent valuation to another buyer who meets the eligibility criteria (ie a local first-time buyer) when they want to move up the housing ladder.

The government is considering whether to use section 106 as the vehicle for delivery of First Homes or to set a separate percentage of units on a development as the house builders obligation. As with current affordable homes the CIL is likely to be waived.

Maybe you have had your say already but if not click here to contribute to the consultation and take a deep dive into the details.