First Homes funding boost for new homeowners in Perry Barr
Up to 99 more affordable homes are being made available for first-time buyers at the Perry Barr Residential Scheme (PBRS).
The announcement follows a successful bid for funding by Birmingham City Council for a new Government-backed scheme delivered by Homes England.
A total of £5.7 million has been awarded to the council after a successful bid to join the First Homes Early Delivery Programme – which enables properties to be sold at 70 per cent of their market value, enabling purchasers who may otherwise not be in a position to purchase, or who may look to purchase in a cheaper market, to access home ownership in the new Perry Barr development.
If all 99 homes are bought by those looking to get on the property ladder, it will increase the number of affordable homes being delivered at PBRS to 411 of the 968 currently under construction. Overall, it will mean 29 per cent of the wider Phase 1 of PBRS’s 1,414 homes are affordable, up from an initial 22 per cent.
Under the terms of the First Homes Early Delivery Programme, the Government will make up the remaining 30 per cent of the initial sale price, so that the developer (in this case the council) receives 100 per cent of the value when the homes are sold.
The First Homes Early Delivery Programme is accelerating delivery of the Government’s new flagship affordable home ownership product, which going forwards will be delivered through housing developer contributions in the planning system.
The product is recognised by mortgage providers and the homes in question will remain as First Homes in perpetuity so that when a purchaser comes to sell their property, they would then sell at 70 per cent of the market value.
The homes form part of the first phase of some 5,000 new homes set to be delivered in northwest Birmingham in the coming years. Building on the vision set out in the Perry Barr 2040: A Vision for Legacy masterplan, there will be a broad range of housing types and tenures to support sustainable, mixed communities.
Cllr Ian Ward, Leader of Birmingham City Council, said: “We know how tough it is for people to get onto the property ladder and we’re doing everything we can to provide more affordable homes across Birmingham.
“These additional homes will make a huge difference to first-time buyers in Perry Barr, helping us ensure that the neighbourhood becomes a place where people want to settle and lay roots.
“This is only the first phase of our longer-term vision for northwest Birmingham and is a platform for the delivery of more much-needed homes and infrastructure in the years to come.”
To access the discount, sale of the homes in Perry Barr must be completed (legal completion) by the end of March 2023. Off-plan sales are set to commence in summer 2022, and properties will be available to move in to from early 2023. Full details of the sales will be promoted and publicised in due course.
The team leading the PBRS project are confident these homes will be snapped up in the coming months, but even if all 99 properties are not sold by March 2023, the council will receive a slice of the £5.7 million that is proportionate to the number of homes sold.
Requirements to purchase a First Home
Purchasers of First Homes must be eligible first-time buyers and must have a household income not exceeding £80,000 (or lower if set by the local authority). For a home to qualify as a First Home, its sale price after the 30 per cent discount cannot exceed £250,000. A First Home should be the buyer’s only home and a purchaser will need to use a mortgage or home purchase plan for at least 50 per cent of the purchase price of the home.
To find out more about the First Homes product see more information here: Own Your Home | First Homes Scheme – Own Your Home.
To find out more about the Perry Barr Residential Scheme, please visit our dedicated webpages on all aspects of the ongoing regeneration of Perry Barr.