At least 25% of a developer’s requirement to build at least 10% affordable housing will need to be First Homes from 28th June 2021, so at least 2.5% of all homes built in a scheme would need to be First Homes.
First homes will be sold at a discount, available only for first-time buyers, of 30% at a minimum. There is a price cap, after the discount has been applied, of £250,000 or £420,000 in London.
In the consultation on MHCLG proposals for First Homes, the GLA responded that such homes would be unaffordable to most Londoners and the discount is likely to have a negative impact on developers’ contribution to desperately needed low cost rent homes.
Planning magazine had an article on ‘First Homes’ and Property Week published comments on the perpertual discount trap that would apply.