The First Homes scheme will support people who are struggling to get onto the property ladder by offering homes at a discount of at least 30 per cent compared to the market price.
That percentage will then be passed on with the sale of the property to future first-time buyers, meaning homes will always be sold below market value.
The first properties under the scheme went on the market in Shirebrook on Friday as part of the initial phase of an early delivery project in the Bolsover district, with the Housing Secretary Robert Jenrick in attendance.
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He said: “Enabling more people to buy their own homes is at the heart of the mission of this Government, and First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.
“Thanks to First Homes, we will offer more homes to local people and families, providing a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices.
“First Homes will also support our fantastic key workers who are looking to get their first foot on the housing ladder – from front-line doctors and nurses to delivery drivers and supermarket staff – by giving many of them the chance to buy a home at a 30 per cent discount.
“These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”
Up to 60,000 First Homes are expected to be delivered across England and Wales by the end of the decade, with the first being those in Shirebrook.
Around 1,500 more will be available by the end of year, with delivery focused in the Midlands and the North.
The First Homes scheme is part of the government’s wider pledge to build one million new affordable homes and help put home ownership within reach for more people.
Housing Minister, Christoper Pincher, said: “I know there is nothing like the feeling of pride when you get the keys to the first home you can call your own – when you can say to friends and family, ‘Welcome to my home’.
“By building more homes – delivering, despite the pandemic, the biggest increase in new homes in 30 years last year – and helping more people on to housing ladder we are making that dream come true for more young people and families in the East Midlands and throughout the country.
“In doing so, we are keeping our promise to level up; to recreate an ownership society in which everyone has a stake.”
Lloyds and Nationwide Building Society are among the lenders which will be offering high loan-to-value mortgages against First Homes to support the roll-out of the scheme.
First Homes follows on from the 95 per cent mortgage guarantee scheme and the government’s ‘Own Your Home’ campaign.
For more information on routes to home ownership visit the Own Your Home website.