The scheme has been made available today (26th August) in Newton Aycliffe, Durham, and offers homes at a discount of at least 30% compared to market price.
That same percentage will then be passed on with the sale of the property to future first-time buyers, meaning homes will always be sold below market value for generations to come.
Lloyds and Nationwide, along with local building societies and community lenders, have announced that they are offering high LTV mortgages against First Homes to support the roll-out of the scheme.
Homebuilders across England can also bid for a share of a £150m package by offering plots for sale as First Homes to support the scheme.
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“Enabling more people to own their home is central to the mission of this government, and First Homes will offer a realistic and affordable route into homeownership for even more people,” said housing secretary Robert Jenrick.
“By offering the chance to buy a home at a 30% discount, we are giving local people, families and key workers, like NHS staff and forces veterans, a route into homeownership where they already live.”
The Elder Gardens development is on the edge of Newton Aycliffe and will deliver 12 new First Homes on the site.
Tim Beale, chief executive at Keepmoat Homes, added: “We are delighted to be working with our partners in government, Homes England, and Durham County Council to officially launch the First Homes scheme at our Elder Garden development.
“This is a true example of how working in partnership helps to support local people and communities.”
This is the third early delivery project of the scheme following launches in Bolsover, Derbyshire and Cannock, Staffordshire.
Further sites are set to launch across the country in the coming months.
A further 1,500 will join the market through a government-funded pilot launched this year, with up to 60,000 First Homes projected to be built across England and Wales by 2029-30.
Each individual local authority can set a local connection test to determine who should be prioritised for the scheme based on the needs of their communities.