Homes England - First Homes Early Delivery Programme 2021-23

Descriptions

The following criteria for First Homes will apply, a. Homes must be sold at a fixed discount of 30% to Market Value in the Early Delivery Programme 2021-23., b. A price cap limit after the discount in England (excluding London) of £250,000 will be applied, meaning a maximum Market Value (before 30% discount) of £357,143. The price cap is fixed for the duration of the early delivery programme 2021-23., c. There is a maximum household income cap (all applicants) of £80,000 in England (excluding London) for eligible purchasers. This is fixed for the duration of the programme 2021-23., d. First Homes are always valued at Market Value (as defined by the RICS Valuation-Professional Standards). Evidence of pre-sales valuation from an RICS Registered Valuer will be required prior to the application of the 30% discount to evidence that the house value does not exceed the price cap., e. Qualifying purchasers must always be first time buyers and will need to meet local criteria (e.g. live or work in the area – see below) or be Key/essential workers, if applied. Local Authorities will be able to determine their own local criteria and prioritisation of Key/essential Workers. These eligibility requirements will therefore be locally determined and set out in an addendum to the local planning agreement between the local planning authority and the house builder., f. First Homes will be marketed to buyers meeting the First Time Buyer, income cap and local criteria for 3 months. If no buyer is found after 3 months, the home will be marketed to the national criteria only of First Time Buyer, price cap and £80,000 household income cap for a further 3 months. If no buyer is found at the end of this period, an application may be made to the local planning authority for the home to revert to market sale. The scheme total of First Homes and grant funding available will be reduced if this occurs., g. For the purposes of this early delivery programme the local criteria (for the 3 months of marketing are proposed as (and always meeting First Time Buyer and £80,000 household income cap)) are assumed to be:, i. Live or work in the Local Authority area of the First Home purchase; or, ii. Are a Key work/essential worker or Armed Forces (using the national definitions for Armed Forces and key/essential worker defined locally)., h. The local criteria applicable may be varied in some respects by local authorities but the approach will broadly be as set out above., i. The First Homes definition of First Time Buyer is the same definition applied by Government for Stamp Duty Land Tax first time buyer relief., j. The discount will be guaranteed to future buyers in perpetuity, subject to limited exceptions., k. The draft standard form S106 First Homes conditions for this supplemental deed as been drafted and is included in the tender documentation. The standard form conditions are to ensure consistency and e.g. to ensure the support of mortgage lenders. .