The government has announced its First Homes scheme - a policy under which it says some new homes will see their costs cut by a third.
The scheme will lower deposit and mortgage requirements for local first-time buyers in England – “shaking up the housing market and making the dream of home ownership a reality” according to a statement overnight by the government.
The discount will apply to a proportion of new homes, with the government consulting on how this will be delivered. Veterans will be prioritised as part of Armed Forces Covenant and councils will also be able to use the scheme for front-line workers in their area such as police, nurses, prison officers and teachers.
The scheme will apply the discount in perpetuity, so when the home is sold in years to come the new local buyer will be able to purchase it at a discount as well.
Housing Secretary Robert Jenrick MP says: “First Homes will be genuinely life-changing for people all over the country looking to buy their first home.
“I know that many who are seeking to buy their own home in their local areas have been forced out due to rising prices. A proportion of new homes will be made available at a 30 per cent market discount rate – turning the dial on the dream of home ownership.
“The discount will be passed on with the sale of the property to future first-time buyers, helping thousands more people in years to come and ensuring local communities can stick together.”
The government says the average price of a newly-built home in England is £314,000.
Under First Homes, a property sold with 30 per cent off this price would deliver a £94,000 saving and enable first-time buyers to get on the ladder faster by taking more than £18,000 off a 20 per cent deposit.
The average newly-built home in Cornwall, for example, costs £246,000, meaning a 30 per cent discount delivers a saving worth more than £73,000.
"Areas with particular affordability pressures will see even greater savings with a 30 per cent discount" according to the government's statement.
The proposals have today been launched for consultation: the 31-page consultation document is here.
A single-page guide to the new policy, released this morning by the Ministry of Housing, Communities and Local Government is here.