First Homes: what’s the big idea?

Originally published as a column for insidehousing.co.uk

It is of course complete coincidence that the First Homes scheme was launched in the constituency that perhaps most symbolises the Conservative election victory in 2019.

It’s not just that Bolsover had been Labour since it was created in 1950, it’s also that it had been represented by Dennis Skinner since 1970, making it a reverse ‘Portillo moment’ for the Tories.

All of which makes the launch of the scheme itself look like an extension of the nakedly political approach taken with the Towns Fund and Levelling Up Fund.

A more generous interpretation might be that the government had more sway over this particular site, which looks like it was developed by Keepmoat Homes in partnership with Homes England.

Either way, this is the launchpad for housing secretary Robert Jenrick’s big idea, homes for sale at a discount of at least 30 per cent market value to first-time buyers. Discounts of up to 50 per cent may be available in some localities.

This is Starter Homes 2.0 with one significant advantage over the original scheme: the discount will remain in perpetuity rather than disappearing into the pocket of the first buyer.

The disadvantages remain the same. The scheme will be delivered initially with grant and then via the planning system. Either way it will squeeze out other forms of affordable housing funded via Section 106, with 25 per cent of developer contributions reserved for First Homes. The government claims it will ringfence homes for social rent so the main impact could fall on share ownership and affordable rent.

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