Mark Prisk: 41 developers to share FirstBuy funding pot to deliver new homes

Published by Jon Land for 24dash.com in Housing and also in Central Government

Housing minister Mark Prisk today announced the first allocations from a £280 million funding pot designed to help 16,500 first-time buyers benefit from the Government's FirstBuy scheme.

Mr Prisk confirmed that an initial £40 million will go to 41 developers to help 2,500 first-time buyers this year - and called on them to go further, and bid for a share of the remaining £240m to help deliver thousands more new homes under the scheme next year.

The FirstBuy scheme reduces the amount of deposit first-time buyers have to find by offering an equity loan of up to 20 percent provided by the Government and developers.

The Minister said the scheme has already helped thousands of buyers across the country, with 3,000 sales made by March this year and developers reporting more than 8,000 FirstBuy reservations by the end of August.

The £280million boost to FirstBuy forms part of the Housing and Growth Package announced by the Prime Minister and Deputy Prime Minister in September.

Housing minister Mark Prisk said: "Firstbuy has already proved hugely successful, providing a practical alternative to the Bank of Mum and Dad for thousands of first-time buyers across the country.

"The scheme has become a major player in helping people onto the property ladder and getting Britain building again - and I'm determined to maintain that momentum.

"That's why today just a month after the Prime Minister confirmed this funding boost, I'm asking developers to start putting this money to good use - and giving them the chance to start planning for how they can help first-time buyers in the coming year."

Homes and Communities Agency chief executive Pat Ritchie said: "We welcome the additional £280million of FirstBuy funding, which will make a major difference to the lives of prospective homebuyers and keep momentum for affordable home ownership going, not only for this financial year but for the year after.

"We are pleased to be able to allocate some of the funding for this financial year, and anticipate a strong bid response to the remaining £240million, and we look forward to working with our developer partners to bring these homes forward."

Mark Prisk learned about Orbit housing group's role in the FirstBuy scheme when he spoke to chief executive Paul Tennant (both pictured).

Orbit is the largest Homebuy Agency in the country and is due to help more than 1,000 people into ownership through the Government Firstbuy scheme this year. Orbit also builds around 1,000 homes for sale, shared ownership and rent.

On Wednesday, Mr Prisk visited the Taylor Wimpey development in Highfield Road, Edgbaston, Birmingham, which offers buyers a 20 percent equity loan to help them. The site will see 57 houses and apartments built.

Orbit chief Paul Tennant said: “As a major developer and the largest HomeBuy Agency in the country we have helped thousands of people onto the property ladder, and it was great to have the chance to talk to the minister about the success of the programme and the benefits of supporting the sales market.

“It was great example of working together with Taylor Wimpey to get sales moving and provide a range of solutions for people, and at the same time supporting jobs and growth.”