20 February 2024 , 12:28
756
0
A couple knocked almost £67,000 off the price of their first home thanks to a relatively unknown scheme.
Alex and Diana Major, aged 38 and 39, used the First Homes scheme to get a 30% reduction on their three-bed house in Worksop, Nottinghamshire. Through this scheme, you can get a discount of up to 50% on new-build properties - although there is strict eligibility criteria that you must meet first.
Alex told The Mirror: "We didn't know about the scheme, it was by pure chance we stumbled across it. We were able to get on the housing ladder a lot quicker than we could ever imagined. Without the scheme it would have possibly taken another two years of saving whilst renting to be able to afford it."
The property purchased by Alex and Diana was priced at £219,995 and the couple received a discount worth £65,998 - leaving them paying a purchase price of £153,996. The couple, who work as a sales manager and freight audit specialist, had previously been privately renting and estimate the First Homes scheme allowed them to get on the property ladder two years earlier than planned.
Alex and Diana moved into their home with seven-year-old son, Dennis, and their dog Mellow in April 2023. The family put down a 5% deposit of £7,700, with their new-build purchased through housebuilder Keepmoat. As well as securing a discount, the couple say their son Dennis, who had been suffering with health problems as a result of their rented property, has seen a huge improvement since their move.
Family's 'nightmare' as £345,000 new home plagued with mould and unfinished work
First Homes scheme explained
The discount applied to a property through the First Homes scheme is normally between 30% and 50% of the value of the home. The property must be a new-build, or previously bought by someone else through the scheme. It must also be your only or main residence.
The home cannot cost more than £420,000 in London, or £250,000 anywhere else in England, after the discount has been applied. To qualify for the scheme, you'll need to have had a household income of £80,000 or less, or £90,000 or less in Greater London. You must also be aged 18 and a first-time buyer, and able to take out a mortgage of at least 50% of the purchase price of the property.
If you're in a couple, your joint income cannot be higher than those amounts we've mentioned above - but once you've purchased a home through the scheme, it doesn't matter if your income later increases. Local councils can apply their own eligibility criteria for the First Homes scheme - for example, they may prioritise people already working in the area.
When you come to sell the property, you should be aware that you can only sell it to someone else who is eligible for the First Homes scheme - and for the same percentage discount that you originally received.
You can ask your local council for permission to sell your property at the full market price to any buyer if you’ve tried to sell your property through the scheme for six months or more, or if selling it with the First Homes discount will cause you severe financial difficulties. If you do sell your home for full market price, you’ll need to return the percentage discount to the local council.