The new First Homes Affordable Housing scheme will seek to support eligible first-time buyers to buy a home for a discount of at least 30% compared to the open market price. Full details of the scheme can be found here. https://www.gov.uk/government/consultations/first-homes
The First Homes discount will be registered on each home title in perpetuity.
This Early Engagement relates to a First Homes Pilot scheme for 2021-23 that will deliver an estimated 1,500 First Homes for sale.
The early pilot delivery will provide learning to Homes England to assist the national implementation of First Homes which will deliver at scale via the planning system.
Homes England intends to procure house builders to offer Pilot First Homes for sale from summer 2021 with the support of Homes England grant funding estimated to be up to £150m. These Pilot First Homes made available in this way will be from homes intended for market sale (not any Affordable Housing provision already agreed between builders and Local Authorities) discounted by 30%, marketed as First Homes and purchased by eligible buyers.
This Early Engagement is not a call to competition. The purpose is to invite potential suppliers, house builders and relevant third-party stakeholders e.g. mortgage lenders and Local Authorities, to participate in a market testing exercise to assist Homes England in the design of the Pilot and our requirements. This market testing exercise consists of an Information Document and questionnaire to be made available shortly and, at the discretion of Homes England, may also include one or more information days at which feedback may be provided on a face-to-face basis. The First Homes Pilot with grant funding will apply to England excluding London.
A decision on whether the Pilot will be divided into lots has yet to be made.
Those wishing to request an Information Document and questionnaire must email their request to first.homes@homesengland.gov.uk