We are very happy to announce that we have won our bid to deliver the new government scheme FirstBuy. This is fantastic news for first time buyers and those looking for their next home as they can now buy one of our quality new homes through this new shared equity scheme, giving them the opportunity to gain a foothold on or move up the property ladder sooner than they might have thought.
The £500m scheme, jointly funded by house builders and the government will be restricted to new-build properties and available to first time buyers with a household income under £60,000.
The equity loans which will be interest free for the first 5 years will be jointly funded by the treasury and the housebuilder, and worth up to 20% of the value of the property. This would mean that someone could own a beautiful two bedroom semi-detached Chestnut Home by paying as little as £87,960. This could allow many struggling first time buyers to get a mortgage more easily, something which has certainly been a challenge for many in the past.
Since the 2007 financial crisis, deposits for first time buyers have risen from around 5% of purchase price to 25%, in order to qualify for the best deals. Finding a deposit is perhaps the biggest barrier when attempting to make that initial step onto the housing ladder, but today’s news casts a light at the end of the tunnel and home ownership could now be a real possibility for many.
Housing Minister Grant Shapps confirmed the scheme also has the backing of key lenders including Nationwide, Halifax, Barclays and The Melton Mowbray Building Society. "With 80 per cent of young first-time buyers depending on parental help, I am determined that we pull out all the stops to help those who want to take their first steps onto the property ladder,” Shapps said.
The FirstBuy scheme will be delivered through the government’s Homes and Communities Agency (HCA) and Midland’s executive director, Paul Spooner said; “Thanks to FirstBuy, 2,500 first time buyers in the Midlands will be able to get a foot on the property ladder, while house builders including Chestnut Homes will benefit from an additional source of sales, giving a much-needed boost to the development industry.”
Demand for this scheme is expected to be high and there is only limited funding available, so buyers are urged to register their interest as soon as possible by visiting any of our sales centres or emailing firstname.lastname@example.org.
About the HCA
The Homes and Communities Agency (HCA) is the single, national housing and regeneration delivery agency for England. Their vision is to create the opportunity for people to live in homes they can afford in places they want to live, by enabling local authorities and communities to deliver the ambition they have for their own areas.