First Homes funding to help first-time buyers in Perry Barr

Up to 99 more affordable homes are being made available for first-time buyers in Perry Barr, after a successful bid for First Homes funding by Birmingham City Council.

A total of £5.7m has been awarded to the Council after a bid to join the First Homes Early Delivery Programme, which enables properties to be sold at 70% of their market value.

Under the terms of the First Homes Early Delivery Programme, the government will make up the remaining 30% of the initial sale price, so that the developer – in this case the council – receives 100% of the value when the homes are sold.

The scheme will allow purchasers who may otherwise not be in a position to buy, or who may look to purchase in a cheaper market, to access home ownership in the new Perry Barr development.

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.’

Under the scheme, purchasers of First Homes must be eligible first-time buyers and must have a household income not exceeding £80,000. The sale price of the home must also not exceed £250,000 after the 30% discount.

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.

In related news, the ‘This City’ housing development company, wholly owned by Manchester City Council, was formally launched last week to accelerate the number of new homes in Manchester.

Photo supplied by Birmingham City Council