Discount for first-time buyers – but it depends where you buy
Teresa May has promised thousands of new houses are to be built on brownfield land to help first-time buyers get on to the property ladder.
The Prime Minister this week promised to help people aged between 23 and 40 to buy their first home – providing they look in one of 30 different areas across the country.
In the proposed plan, construction on the new homes will begin early this year. The properties will be available to buy from 2018.
Last year, Teresa May revealed she wanted to help the “just about managing”. Now, housing minister Gavin Barwell has announced the government’s commitment to do this by building more starter homes - helping young first-time buyers get on the housing ladder.
The government will financially support the construction of the new properties, and the homes will be sold by developers at a 20% discount to help young people who have been saving to get a mortgage.
Where to look
New properties will be constructed in 30 areas across the UK. These plots have been chosen as it’s believed they have the potential for the work to be completed early.
The new project will run alongside the £1.2 billion Starter Home Land Fund, which was set up in April last year. It was designed to support the “acquisition, remediation and de-risking” of land suitable for housing around the country. Councils, including those in Liverpool, Plymouth, Worthing and Blackpool, and the City of London, have already made successful bids.
Below you can find a list of the new Starter Home Land Fund partnerships. Are there any near where you’re looking to buy?
Liverpool City Council (in association with Sefton, Knowsley, Halton, Wirral, St Helens)
Luton Borough Council
Mid Sussex District Council
North Somerset Council
Northumberland County Council
Pendle Borough Council
Plymouth City Council
Rotherham Metropolitan Council
Rushmoor Borough Council
Sheffield City Council
South Kestevan District Council
South Ribble Borough Council (in association with Preston City Council and Lancashire County Council)
South Somerset District Council
Stoke-on-Trent City Council
West Somerset Council (in association with Taunton Deane Borough Council, Sedgemoor District Council)
What is brownfield land?
The term brownfield describes land that has previously been used for industrial or commercial purposes. Unlike other types of plot, there is a risk that the land may have been contaminated.
What does this mean for me?
If you’re a first-time buyer, the announcement could be promising news. As new homes specifically aimed at first-time buyers are being built, you won’t have to compete against second-time buyers or property developers when you put in an offer.