The government has published a consultation on its manifesto commitment for new First Homes.
First Homes, as currently proposed, are homes for sale to first-time buyers at a discount of at least 30% on their open market value. It is proposed that this discount is funded by the value that would otherwise be captured by Section 106 agreements.
At present around half of new affordable homes come through developer contributions negotiated by councils under Section 106 of the Planning Act, so we’re concerned that diverting funding to First Homes will make it more difficult to provide homes for people on lower incomes.
The proposed plans are available on the government’s website, and are open for consultation until 3 April. We are working on a sector-wide response and want to hear members’ views.
We support efforts to increase home ownership, but not at the expense of building homes for people most in need.
If these proposals go ahead, we will need to see a significant increase in government funding for affordable housing, to prevent the loss of future affordable homes.
We’re also aware of the impact these proposals may have on development pipelines, and housing associations’ ability to plan for the future.
Our priority is to explore these implications further, and understand the impact you think these proposals will have. We’ll then put forward a strong sector-wide response that promotes the need for more genuinely affordable housing.
We've published a briefing with further information on the proposals.
Please share your views by emailing Duncan Neish.