Your First Home property price caps revealed

Almost half of new-build homes sold last year would have been within the Government’s price thresholds for the Your First Home scheme.

The Government released the Your First Home regional property price caps yesterday.

The pricing sets out the maximum value of a property a buyer in each local authority can purchase using the Your First Home Scheme.

These figures show what existing stock can likely be sold using Your First Home, but longer term, the caps will start to shape what homes housebuilders decide to deliver.”

Analysis by Connells shows 46% of new-builds sold last year would have been within most thresholds.

There are regional variations, with the numbers rising to 58% in London, but as low as  40% in the South West and North East of England.

Around 53% of homes across England are within 5% of the cap, according to the research.

The figures are higher for flats at 67%, rising to 92% in the East Midlands and as low as 56% in the North East.

The research shows 41% of new-build houses were in the cap, falling to 28% in London and rising to 47% in Yorkshire and Humber.

Housing delivery

Aneisha Beveridge (pictured), Connells Group Research Director, says: “The Your First Home price caps cover just under half of all new build homes sold in England last year, a figure which rises to just over two-thirds of new build flats.

“The level at which the caps have been set should give would-be first-time buyers access to a choice of both flats and smaller houses in most areas, ensuring healthy take-up of the scheme. While larger houses mostly sit above the price caps, this isn’t unreasonable for a scheme designed to support first-time buyers.

“In the short term, these figures show what existing stock can likely be sold using Your First Home, but longer term, the caps will start to shape what homes housebuilders decide to deliver. The new price caps may also help breathe life back into the flat market, by encouraging more first-time buyers to consider apartments in order to benefit from the interest-free equity loan.”

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Author: Gemma