HOUSE ABOUT THAT
What is Boris Johnson’s affordable housing plan and how will 30% home discount work for first-time buyers
BORIS Johnson has today revealed a new affordable housing plan to help Britain bounce back from coronavirus.
It includes thousands of discounted homes for first-time buyers - below we explain everything we know so far.
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What has Boris Johnson announced?
Boris Johnson today revealed reforms to the UK's planning system, in an effort to make it easier to build better homes where people want to live.
New regulations mean buildings and land in town centres will be allowed to change use without requesting planning permission.
It'll also enable new homes to be created from empty buildings - for example, high street stores that have closed due to the coronavirus crisis.
These changes are planned to come into effect by September.
The Prime Minister also confirmed a £12billion affordable homes programme aimed to support up to 180,000 new affordable homes for ownership and rent over the next eight years.
Plus, smaller house builders will be given an extra £450million in funding for new housing developments.
This is expected to support delivery of around 7,200 new homes.
The announcement comes after the government hadn't hit previous building targets.
How does it help first-time buyers?
In the affordable homes programme, a 1,500 unit pilot of "First Homes" is set to be included.
First Homes are flats and houses built on developments up and down the country.
They will be no different from other properties except they will be sold to first-time buyers with a discount of 30 percent.
They will be sold to local people who want to stay in the community where they live or work but are struggling to buy a home at market prices.
The discount will be passed on to future buyers when First Homes are resold so more people can be helped onto the property ladder.
How can you get 30% off your first home price?
First-time buyers will buy First Homes in the usual way and will have access to conventional mortgages by lenders.
The government is still consulting on the final design of the First Homes scheme though, so we'll update this article once we get more details.
What other help is out there for first time buyers?
Getting on the property ladder can feel like a daunting task but there are a number of schemes available to help first-time buyers have their own home.
Help to Buy Isa
It's a tax-free savings account where for every £200 you save, the Government will add an extra £50.
But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan
The Government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit.
The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa
This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home.
You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership
Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount.
You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London
London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
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Meanwhile, a "surprise" housing market rebound of up to 3 per cent will mean property prices don't start to fall until later this year, says Zoopla.
We explain what’s next for house prices as first-time buyers fear they will be frozen out of the market.
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