The scheme works by the Homes and Communities Agency (HCA) and the house builders loaning a total of 20 per cent of the property price, meaning purchasers only have to make up the other 80 per cent from savings and a mortgage to buy a home outright.
It is anticipated that FirstBuy could help up to 200 households in the East Riding between now and 2013 and because FirstBuy is only available on new-build properties it also offers a timely boost to the housing market as well as supporting jobs in the construction industry and related trades.
Councillor Symon Fraser, cabinet portfolio holder for housing, environment and planning at East Riding of Yorkshire Council, was pleased with the announcement.
He said: “We all know that house prices in the East Riding are beyond the reach of many people living and working here, especially those trying to set up their first home. It has become very difficult for people to save the large deposits banks and building societies want.
“This scheme offers help to first-time buyers and will be most welcome, it will also help to shorten the council’s housing waiting list.”
Subject to contracts being signed over the summer, house builders offering FirstBuy in the East Riding, will include national builders Barratt, Bovis, David Wilson, Gladedale, Linden Homes, Persimmon and Redrow, as well as local firms, such as Fulford Builders and Peter Ward Homes.
A variety of property types and sizes will be available on schemes across the whole of the East Riding, including the main towns of Beverley, Bridlington, Brough, Cottingham, Driffield, Goole, Hornsea, Howden, Market Weighton, Pocklington and Withernsea, as well as smaller villages, such as Barmby Moor, Beeford and Hook.
David Curtis, executive director at the Homes and Communities Agency said: “I am really pleased that our investment will mean that local people can buy the home they want at a price they can afford. By having homes available in almost 20 locations from nine developers means that first time buyers will have a fantastic choice. “
Anyone wanting more information should contact the house builders direct, or approach my4walls, the local HomeBuy Agent at www.my4walls.co.uk
No fees are charged on the loan for the first five years and the loan has to be repaid when the property is sold or the mortgage paid off.Hu17.net - It's all about Beverley