A total of £180 million has been allocated to provide nearly 10,500 new homes for sale with the help of an equity loan across England over the next two years. The successful bidders are a mix of housing associations, major housebuilders and smaller local building firms.
FirstBuy was announced in March's Budget as a new equity loan scheme specifically designed to help first time buyers struggling with the need for a large deposit, while simultaneously supporting economic growth by giving house builders the confidence to progress developments. Under the scheme an equity loan of up to 20% of a home’s value is jointly funded by the HCA and the house builder, meaning the taxpayer’s contribution is matched by the private sector.
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It is anticipated that the first new homes will be available for sale in September.
Pat Ritchie, Chief Executive of the HCA, said: "Thanks to FirstBuy nearly 10,500 first time buyers will be able to realise the dream of owning their home, while house builders will benefit from an additional source of sales.
"We had an excellent response from our partners – including smaller local builders – and have been able to allocate funding that gives first time buyers the assistance they need while delivering real value for the taxpayer. And when the homes are resold by the initial purchaser in the future, and the loan is repaid, the return can be available for reinvestment in more new affordable homes."
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