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Government allocates £40 million for FirstBuy

Government allocates £40 million for FirstBuy

Category: Mortgages

Updated: 12/10/2012
First Published: 12/10/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The first allocation of the FirstBuy programme has been announced by the Housing Minister Mark Prisk, following an additional £280 million last month.

Forty-one housing developers will share £40 million to help provide homes for 2,500 prospective first-time buyers.

Under the FirstBuy scheme, intended to help revive the ailing first-time buyer market, prospective buyers are given a loan of up to 20% of the value of a new build property, funded jointly by the Government and the participating housing company.

The incentive has proved popular since its launch in March 2011, with a reported 10,500 successful property sales made within its initial eighteen months.

Prisk confirmed that the extra £280 million would assist a further 16,500 people with buying their first home.

"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," he said.

"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."

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