Housebuilders invited to access £150 million fund to support first-time buyers

Housebuilders in England have been invited to bid for a share of a £150 million fund to build First Homes to make it easier for people to purchase a property.

The fund will enable housebuilders to deliver properties that can be sold at 30% below market value to help key workers and first-buyers get on the property ladder; the same discount can then be passed on to future buyers.

House builders are being invited to work with the government to deliver First Homes across the country in the coming months, with the aim of delivering 1,500 homes by March 2023. The contract award will give housebuilders the opportunity to engage with local councils and mortgage providers, understand the expected level of customer demand and to learn more about the delivery process ahead of the full roll out through planning.

The £150 million boost for First Homes comes following success with two trial sites in the Midlands.

Housing Secretary Robert Jenrick said:

It is great to see the First Homes scheme gaining momentum and I am happy to invite house builders to deliver this flagship house building programme across the country.

“Lenders have already seen the first mortgage applications come in as more homes come onto the market. It will support local communities and give local people a greater chance of getting on the housing ladder and having a place which they can call their own.

“Just as importantly, homebuilders of all shapes and sizes will now be able to benefit from this scheme while helping first-time buyers and key workers onto the property ladder.”

Peter Freeman, Chair of Homes England added:

The Early Delivery Programme is a great opportunity for housebuilders, housing associations and the wider development sector to get to grips with First Homes. We look forward to working with partners to help aspiring homeowners realise their ambitions and own their own home.

“Councils will also be able to prioritise the homes for keyworkers such as nurses and teachers who have been looking to get on the housing ladder while supporting their community throughout the pandemic.”

More information for house builders on the invitation to tender (ITT) is available on Procontract.