Boost for first time buyers
FirstBuy is a new product in the Government’s HomeBuy range designed to help first time buyers into home ownership in a way they can afford. It is expected to assist nearly 10,500 purchasers to buy a new home over the next two years.
FirstBuy is part of the Government’s wider proposals to boost growth by simultaneously stimulating demand, tackling supply-side barriers and supporting local priorities for supply. FirstBuy is aimed at maintaining capacity in the housebuilding industry in the short-term while assisting deposit constrained first time buyers to realise their homeownership aspirations.
FirstBuy support is offered through equity loan funding of up to 20% of the purchase price split equally between the HCA and the housebuilder, with purchasers being required to raise funding (a mortgage plus deposit) of at least 80% of the purchase price.
FirstBuy is being delivered by the HCA, working with housebuilders and housing associations, as part of our Affordable Homes Programme. We announced FirstBuy allocations on 20 June, following a bidding competition for housebuilders. We anticipate signing the first contracts in July, with the first homes being available from September. There will be separate contracts for delivery in London.
Homes & Communities Agency 20.06.2011