The sky-high prices of property in the UK at the moment and the mammoth task of saving enough for a deposit can put home ownership out of reach for many.
As well as saving for a deposit, new buyers also need to save for other costs such as land registry changes and legal costs for tasks like conveyancing and transfer of equity, should you require this. New buyers should make sure that they engage the services of professional conveyancers such as https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-process-3894 to make sure that nothing goes wrong.
Luckily, the government has several schemes that can help give first-time buyers a leg-up. As well as measures like Lifetime Individual Savings Accounts that will help people save for a deposit, the government has also announced the First Homes scheme.
How does it work?
The First Homes scheme will allow first-time buyers in England (not the rest of the UK) to buy certain houses for either a 50% or 30% discount on their market value.
The home cannot cost more than £425,000 in London, or £250,000 elsewhere after the discount has been applied and you have to be able to get a mortgage for at least half the house price. The property must either be newly built by a developer, or bought from a previous participant in the First Homes scheme.
Who is eligible?
You must be a first-time buyer and at least 18 years old to take part in this scheme. Your household income (that you are buying with) cannot be more than £90,000 in London, or £80,000 in the rest of England.
In some areas, local councils are prioritising key workers and local access to this scheme which is expected to be heavily oversubscribed.