Connells Group: Your First Home Scheme Caps Impact New-Builds
New analysis from Connells Group reveals that government price caps for the Your First Home scheme would have encompassed 46% of new-build homes sold in England during the previous year. These regional thresholds, established by the government for each local authority, display notable geographic variance. In London, 58% of new-build properties qualify under the scheme, whereas coverage sits at 40% in both the North East and South West of England. Additionally, research indicates that 53% of homes across the country are priced within 5% of these designated caps.
The scheme demonstrates a higher rate of eligibility for flats compared to houses. Nationally, 67% of flats fall within the price limits, with regional figures reaching as high as 92% in the East Midlands and dipping to 56% in the North East. Conversely, only 41% of new-build houses meet the criteria, with regional performance varying from 28% in London to 47% in Yorkshire and Humber.
Aneisha Beveridge, Research Director at Connells Group, suggests the caps are designed to help first-time buyers secure flats and smaller houses, noting that larger properties typically exceed these limits. Looking ahead, Beveridge anticipates that these thresholds may influence developer strategies, potentially shaping the types of homes constructed in the future. Furthermore, the availability of interest-free equity loans through the scheme could shift buyer interest toward apartments, potentially altering transaction patterns as the program gains momentum.
Why it matters
For industry professionals, these price caps signal a potential shift in housing supply and buyer demand, as developers may adjust future building strategies to align with scheme eligibility.
FAQ
What percentage of new-build homes in England would have been covered by the scheme?
According to Connells Group, 46% of new-build homes sold in England last year would have fallen within the scheme's price caps.
How does the scheme's coverage differ between flats and houses?
The scheme shows stronger coverage for flats, with 67% qualifying nationally, compared to 41% for new-build houses.
What impact might the price caps have on future housebuilding?
The caps may influence the types of homes housebuilders choose to deliver in the long term to ensure they remain within the eligibility thresholds.
Source: PropertyWire. See the original source for full details.
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