Government reveals house price caps for new scheme aiming to help first time buyers in Derbyshire

The property price caps in areas across Derbyshire for the new Your First Home scheme have been confirmed by the Government.

The scheme aims to give thousands a helping hand to take their first step on to the housing ladder. Eligible buyers will be able to purchase a new-build home using a deposit of at least 2.5% of the purchase price, a repayment mortgage from a participating lender and a government equity loan worth 20% of the purchase price, interest-free for five years.

The scheme is expected to open for applications in February, with the first sales in April. Buyers will normally need to be a first-time buyer, buying a new-build home in England, within the relevant local price cap. They must use the property as their main home and have a total annual household income of £110,000 or less outside London, or £140,000 or less within London.

They must also be able to obtain a mortgage from a participating lender, who will carry out affordability checks.

Aneisha Beveridge, Connells group research director, said: “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.”

Property price caps are being applied in each area to ensure the scheme supports access to modest homes, recognising that markets vary across England, according to the gov.uk website.

The Your First Home property price cap levels for Derbyshire can be found below.