If you’re a first-time buyer earning less than £80,000 per year (£90,000 in London), you may be able buy a home for 30% to 50% less than its market value, this offer is called the First Homes scheme and is available in England only. The programme has been kickstarted with 1,500 First Homes over the next 2 years in over 100 locations.
The home can be:
- a new home built by a developer
- a home you buy from someone else who originally bought it as part of the scheme
The home must be:
- No more than £420,000 in London, or £250,000 anywhere else in England, after the discount has been applied.
- Valued by an independent surveyor to make sure the discount is based on actual market value.
Sounds good right?
The big catch that is often missed:
You can only sell the property to someone who is eligible to buy a First Home. You must give them the same percentage discount that you got, based on the home’s market value at the time of sale!
Is it all that bad?
Well no, you basically can get a bigger house than you could have otherwise afforded and you don’t pay interest/rent on the 30-50% discount.
The TikTok claim:
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