Reasons to choose Wilson Browne
The Ministry of Housing, Communities & Local Government recently published some guidance on ‘First Homes’, a scheme introduced by the Government as a new form of affordable housing.
These are discounted market sale units that are discounted by a minimum of 30% against market value and sold to a person(s) meeting the First Homes eligibility criteria.
The guidance offers detailed information relating to what meets the criteria for a housing unit to be classed as a First Home, who may be eligible to purchase a First Home and First homes in plan and decision making.
First Homes should account for 25% of all affordable housing units secured through developer contributions, and it is expected that First Homes will be secured through planning obligations. It is further required that a legal restriction is registered onto a First Home’s title on its first sale to ensure that the discount is passed on to all future purchasers.
The Government will in due course seek to publish template planning obligations in this respect, and this will also include a mortgagee exclusion clause to ensure appropriate protection for lenders and encourage competitive lending rates.
The scheme is due to be implemented later this year. It has been made clear from the guidance that First Homes are to be the Government’s preferred discounted market tenure in the future.