One quarter of affordable homes on Rotherham’s new developments to be offered to first-time buyers

A quarter of affordable homes on new housing developments in Rotherham will be available at a discount to first time buyers who earn less than £80,000 per year.
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The government’s “first home” scheme will offer first time buyers with a combined annual household income under £80,000 new homes at a discount of at least 30 per cent against market value.

First Homes are to be provided as a mandatory 25 per cent of all the affordable housing sought as part of a developer’s application.

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The homes will be secured by the council under a section 106 agreement with developers.

The homes will be secured by the council under a section 106 agreement with developers.The homes will be secured by the council under a section 106 agreement with developers.
The homes will be secured by the council under a section 106 agreement with developers.

The properties offered under the first homes scheme are set to be priced under £250,000, and councils can apply other eligibility criteria for the scheme in their area.

RMBC’s cabinet is set to approve the scheme at their next meeting on April 25, as well as additional local eligibility criteria to ensure the homes are marketed to Rotherham residents.

A report to cabinet states: “Without the application of local eligibility criteria, the council will be unable to maximise its own affordable housing policy for the benefit of residents.“The council will be directly involved in the sales process for first homes, both at initial sale stage and any subsequent resales.

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“As the council will be involved in the administration of first homes, a fee is to be charged to the developer for the first sale and to cover costs of administration on subsequent re-sales.”

The report adds that concerns have been raised in other areas that many first homes have been sold to purchasers who do not currently live and have never lived within the area, which encourages “in-migration from distanttowns and cities to take advantage of the cheaper house prices,” placing pressure on services.

In a bid to combat this, RMBC will require developers to market the first homes “within the initial three-month period, when local eligibility criteria are applicable.”

“This approach will ensure existing Rotherham residents will have priority to purchase these discount market sale homes.

"Without the introduction of local eligibility criteria, First Homes will have a limited impact in tackling significant affordable housing needs in Rotherham.”

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