A new first time buyer discount scheme is offering 100,000 first time buyers a chance to buy a new build with at a 20 per cent discount is due to be launched by David Cameron soon. This scheme is part of a drive to help people take their first step onto the property ladder.
Those who are under 40 and have never owned a house before are able to register via the Starter Home Initiative at the start of 2015. This is six months earlier than originally planned for, which demonstrates the vigour from the Conservative Party to boost the property market throughout 2015.
Because of a change to the planning system which is set to come into force next year, under-used or unviable brownfield land will be freed and used to accommodate the new builds under this scheme. Developers and councils are being urged to ensure the changes unlock a variety of sites across the country.
Mr Cameron said:
Hard-working young people want to plan for the future and enjoy the security of being able to own their own home. I want to help them do just that.
Under this scheme, first-time buyers will be offered the chance of a 20% discount, unlocking home ownership for a generation. This is all part of our long-term economic plan to secure a better future for Britain, making sure we are backing those who work hard and get on in life.
At the moment, developers can face an average bill of £15,000 per home in Section 106 affordable housing contributions and tariffs. However, under the new scheme, developers offering Starter Homes would not have to pay certain charges.
To ensure the savings are passed onto buyers, the homes will not be able to be re-sold at market value for a fixed period.
More than 30 house builders have already backed the plans with some saying they would consider bringing land forward to be developed next year.
A design panel will be setup to ensure the communities and houses developed are built to a high quality. Renowned architect Terry Farrell, who’s best known for designing the M16 building in London will head up the design panel and has said;
This new scheme will make a real difference. It would build on the recommendations of the Farrell Review, which raised the need for more proactive planning.
With the next general elections in May 2015, everyone at Quick Move Now are interested to see if the wining government implements this new scheme.