First home discounts of 40% or 50%?
Many of us reading this article will remember their first ‘home’. Be it that rental or purchase, it was a big step to take and a chance to come home whenever you wanted, get up when you want and have parties without permission!
For the majority though it would have also been the first big realisation of the cost of living and if we had moved in to our new place with a job we for sure would have seen a big part of our wages going to the rental / mortgage cost and us wondering if we had made the right decision and how cheap living was back with our parents / guardians with just house keeping to pay.
Anyway, the government have always been challenged to provide affordable housing and especially in more recent years where property prices have moved forward considerably and especially against average salaries. With this in mind, how can it be possible the government can provide affordable housing without either collapsing parts of the property market or that they still keep a strong control over these discounted property?
10%, 25% or 40% off the cost of first homes / starter homes is all well and good, though what is the catch? Will the housing we poor standard and tightly squeezed on to new estates not favourably positioned? Well, that happens already and these developments are not for affordable housing, but built to sell and the current going rates.
Will the government keep a control on these housing such as they can not be bought / sold thereafter at massive profits? Will there be small writing in the contracts or the likes of leasehold only, or fleece-holding situations?
The Government released its incentive for First Homes Getting You On the Ladder that sees new developments having to abide by local authority requirements for First Homes under the discount incentive.
“The National Planning Policy Framework (NPPF) is to be amended so that 25% of all affordable units delivered through developer contributions under Section 106 Agreements will be First Homes. Further consultation is to take place in relation to this proposed change but the MHCLG has already confirmed that First Homes will be Community Infrastructure Levy (CIL) exempt.” Shoosmiths.co.uk
There are quite a few loose elements in this new scheme with the likes of whom can apply and salary caps along with the fact that the property does not necessarily have to be your ‘first home’ and you can already be in your own home when you apply.