First-time home buyers get 30% discount under Government scheme

First time buyers will have the opportunity to purchase properties at a 30 per cent discount under a new Government scheme to get more people on the housing ladder.

Robert Jenrick, the Housing Secretary, will on Friday launch a “first homes” initiative, which will be available to locals seeking to buy their first property, including veterans and key workers.

The first properties will go on sale in Bolsover in the East Midlands on Friday, with further sites across the country due to launch in the coming weeks.

The Ministry of Housing, Communities and Local Government said that an additional 1,500 properties would be on the market from the autumn, with at least 10,000 more due to be delivered in the future.

The homes, which are sold at least 30 per cent below market value, form part of Prime Minister Boris Johnson’s drive to introduce more affordable housing.

Under the scheme, local authorities will be allocated funding from the Government, which will then be used to subsidise developers and the sale of the homes at a discount.

Councils will also be able to prioritise homes for local key workers such as nurses and teachers by setting a “local connection test” based on the needs of their communities.

To ensure the properties remain affordable, buyers will also be required to sell them at 30 per cent below market value if they decide to move home.

The scheme is the latest in a series of measures designed to bolster home-ownership, including a new Government-backed mortgage guarantee scheme enabling first time buyers to secure a loan with just a 5 per cent deposit.