Government First Homes Scheme for First-Time Buyers
Posted on 20th February 2020
At MG Legal, we understand that, as a first-time buyer, the prospect of purchasing your first home may seem like a daunting and, not to mention, expensive process. This is where your first choice should be MG Legal’s property solicitors, whom will you provide you with a fixed-fee, competitive quote, with no hidden extras! See for yourself by reading our blog, on how some firms may add on hidden charges to your conveyancing quote, by following this link, here.
Your next consideration may then be, how you are going to fund the purchase. It can take years and years of saving to be in a position to purchase a property, however, this may be set to be made much easier with upcoming government announcements.
As highly-regarded as our property solicitors may be, they cannot assist with funding your new purchase! Luckily, the government is currently consulting on a new programme, to be known as the First Homes Scheme. The First Homes Scheme will provide discounted housing of up to 30% of the market value which, no doubt, will be set to help many on their way. The housing will give priority to not only first-time buyers, but councils can also apply the discount to assist public service workers including armed forces veterans, nurses and teachers. The basis is that the discount will assist first-time buyers, but will also encourage public service workers to stay within the area they work.
The scheme is also aiming to combat areas who suffer issues with affordability. With prices set to be cut by up to one third, our solicitors in Preston are eager to discover the latest updates with the scheme, and how that dream home may become a reality for many earlier than anticipated.
A further benefit is that the discounted rate will be applied in perpetuity. This essentially means that if, for example the perpetuity period is 10 years, the discounted rate will still apply for the entirety of the 10 years. If, therefore, the property is sold after 5 years, the discounted rate would apply to the new buyer. Everyone is a winner? So what is the catch..
Although the scheme seems glowing from the outset, the same has, however, been subject to scrutiny, with recent findings suggesting that the scheme may not be all it promises. The suggestions have advised that those on average or low wages, whom are in need of such assistance the most, may not benefit from the scheme.
This is because, although the discounted rate may provide for a significant decrease in the purchase price, these properties are to be new builds. New build properties do, indeed, come at a price which would require a substantial deposit amount, which many may still not be able to afford. The criticisms suggest that the scheme would only be assisting a select few in purchasing high valued properties, and does not account for the real need for affordable housing many require. By way of comparison, around 25% of the conveyancing work carried out by our property solicitors in Garstang and Preston relates to new build properties, with a similar number being handled by our solicitors in Lancaster.
The scheme is currently under final review with the government and further information is set to be released later in the year. The Ministry of Housing, Communities and Local Government are in discussions over the same, and more information can be found at www.gov.uk.
Follow our legal news page for updates on this scheme as, and when, they arise. We know that our solicitors in Preston will be following this matter closely, no doubt together with many eager first-time buyers and local workers whom are interested in the scheme.
If you are intending on purchasing a property, contact our team of conveyancing solicitors today for a fixed-fee, no obligation quote today, at email@example.com.
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