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First time buyers could be about to cash in

Patrice Kelly
Aug 28, 2019


First time buyers could be about to cash in under new plans being considered by ministers.

A lot of young people move away from where they were brought up in order to get a foot on the property ladder, but that could all be about to change,

There are new proposals to rip up existing rules around "shared ownership" housing to help low-income Brits buy their first home.

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The plans mean Brits could move up the property ladder for just thousands of pounds.

And the up to 20 per cent discount would be offered on the price on new properties, with the cost being borne by developers, The Times said.

Robert Jenrick, the housing secretary, wrote in the paper today: "I want young people... to be able to stay in their communities.

"It’s not right that people on low incomes risk being forced out."

"What a difference it might make to the planning system if existing residents knew that a good proportion of new homes would be sold at discounted prices to local people trying to get on the ladder," he added.

Mr Jenrick mentioned areas that have been difficult for first-time buyers because of second home owners, such as Cornwall and Cumbria, but the policy could be applied across the country.

If it becomes a reality, it would provide some relief for first-time buyers who face having to raise an average deposit of £32,000 with the figure soaring to £110,000 in London.

Thousands of first-time howeowners who bought with a 5 per cent deposit just two years ago could now also be in negative equity due to falling house prices.

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This is when you owe more money on your mortgage than the value of the property.

Paula Higgins, chief executive of the HomeOwners Alliance, told The Sun: "The emptying of communities and the plight of younger people getting onto the property ladder is an issue that affects us all.

"So it is right for government to focus on this, especially in areas where property prices are out of reach of those living and working in the area.

"But the devil is in the detail, and you cannot treat those people who have the right place name on their birth certificate over those who are settled and making a positive contribution to the community they live in.

"First-time buyers should be given the same advantages where ever they choose to live - it shouldn't depend on where they were born."

The Ministry of Housing, Communities and Local Government didn't confirm whether first-time buyers will potentially get a 20 per cent discount when contacted by The Sun.

A spokesperson said: "The proposal is being considered and we will set out more details in due course."

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