First Homes by James Bompas

M U L B E R R Y L AN D

FIRST HOMES

INTRODUCTION TO

FIRST HOMES TARGET MARKET First Homes is an exciting new government scheme that assists first-time buyers get on to the property market. The scheme also supports those who deliver our local services, such as key workers, NHS staff and veterans, to secure a discounted property. For those who struggle to afford market prices in their area but want to stay in the communities where they live and work, First Homes helps create inclusive and sustainable communities for generations to come. This policy is part of a government pledge to build one million new affordable and attractive homes in the current Parliament and help place home ownership within reach for more people across the country.

FIRST HOMES CRITERIA The First Homes Criteria means:

• First Homes must be prioritised for first-time buyers • Must not be sold to any household with a combined annual income in excess of £80,000

• Individuals who can purchase a First Home without a mortgage will not be eligible.

• A First Home must be discounted by a minimum of 30% against the market value.

• The same level of discount, as a percentage below market value, must apply to the home each time it is sold in perpetuity and this should be secured through a planning obligation.

• After the discount has been applied, the first sale of the home must be at a price no higher than £250,000 (or £420,000 in Greater London).

• First Homes should comply with any other applicable planning policies and/or building regulations, for example those relating to space, accessibility, energy efficiency or carbon emissions.

NATIONAL PL ANNING POLICY

EXCEPTION SITES The Government is seeking to deliver First Homes through the exception site route. Exception sites are sites brought forward outside of development plans, in order to deliver affordable housing. Exception sites should be on land not already allocated for housing and;

SHOULD COMPRISE PRIMARILY FIRST HOMES,

BE ADJACENT TO EXISTING SETTLEMENTS, a.

proportionate in size to them and

not compromise the protection given to areas or assets of particular importance as defined in the National Planning Policy Framework.

Local authorities should support the development of exception sites suitable for first-time buyers, unless the need for such homes is already being met within the local authority’s area. A proportion of market or other affordable homes may be allowed on such sites, for example where essential to enable the delivery of First Homes without grant funding. Also, a proportion of other affordable homes may be allowed on the sites where there is significant identified local need. National Planning Policy is clear that First Homes proposals should be supported by Planning Authorities, where they meet the site criteria detailed above.

WHY CENTRAL BEDFORDSHIRE? LOCAL PLAN REQUIREMENTS The Central Bedfordshire Local Plan identifies that there is a need to deliver housing for younger households, particularly first-time buyers who find it difficult to access the housing market at open market values. The Plan states that specific properties at the entry-level end of the market are needed to meet growing demand. The Local Plan was adopted just immediately after the publication of the Government’s Written Ministerial Statement on First Homes. As a result, the Local Plan makes no specific reference to First Homes but states that housing options for younger people should include affordable properties. First Homes is one such affordable housing product and will have the potential to have the greatest impact in areas where first-time buyers are currently priced out of the open market (at the entry-level) but where First Homes would be within reach, when the minimum 30% discount is applied. Central Bedfordshire is a prime example of a suitable First Homes location.

CENTRAL BEDFORDSHIRE MARKET SUITABILIT Y Central Bedfordshire has a notably higher average property sales price in compared to the English average, with local prices continuing to accelerate at a quicker rate than the region as a whole. As of July 2021, figures released from Land Registry show the following results:

• £255,535 is the UK average house price • £332,305 is the Central Bedfordshire average house price • £270,009 is the Central Bedfordshire average house price for a firsttime buyer

Importantly, this average value of £270,009 can be accommodated within the First Homes criteria which states that after the 30% minimum discount has been applied, the first sale of the home must be at a price no higher than £250,000. This is highly beneficial for those trying to get on the property ladder in Central Bedfordshire as recently, the government introduced new price caps on the Help-to-Buy scheme across England. Prior to this, Central Bedfordshire was the most popular location in the country to invest in a property through scheme, demonstrating a high demand in the local property market for first-time buyers.

POLICY INTO PRACTICE For example, a typical Central Bedfordshire resident, say John Smith from Leighton Buzzard, who earns the average local salary of £35,000 per year is keen to get his foot on the property ladder. For John, £270,009 for his first home is simply unaffordable and his dream of home ownership unachievable. Fortunately for John, he is eligible for the First Home scheme and with the 30% discount applied, that property would now cost less than £190,000, reducing the deposit John would have to save by over £80,000. As qualifying buyers can use the government’s 95% mortgage guarantee scheme, the dream of home ownership can become a reality by securing the property with only a 5% deposit. With an affordable deposit of only £9,500, the opportunity for first time buyers to continue living and working in their communities, becomes far more attainable.

MULBERRY HOMES

‘Taking Pride in Your Home’

ABOUT US Established in 2004, Mulberry Property Developments is a privately-owned company that builds both residential and commercial property across the wider Midlands area, and more recently the South-East region. Mulberry’ s journey began in the commercial sector, and we soon expanded our expertise to delivering high quality homes in sought-after locations. At the heart of our brand is a team of highly trained and well-respected directors who bring more than 150 years’ of industry experience with them, ranging from smaller, privately owned developers to large property developer PLCS. This speaks volumes for the quality craftsmanship you can expect to see in any of Mulberry’s work. The Company has grown rapidly and consistently since 2015 and has a clear strategy to increase annual output to 500 – 800 homes within the next five years.

OUR SUSTAINABILIT Y PLEDGE Mulberry Homes are committed to introducing sustainable, ethical and community-centred practices into our core values at every opportunity. Driven by our passionate Main Board, we have launched a number of initiatives which we believe showcase our desire to build homes and communities within environments that our customers really want to live in. These have included the introduction of electric car charging points for residents and visitors, automated smart parcel delivery boxes and even gardening clubs to encourage the growth of community spirit and fresh produce on our resident’s own doorstep. We have also partnered with the World Land Trust in support of its ‘Buy An Acre’ programme to help protect substantial areas of land for the benefit of wildlife across Mexico and Zambia for years to come.

We believe that each initiative promotes positivity, whether its environmentally or personally, and adds to the community’s sense of wellbeing; something close to our hearts.

WHY CHOOSE US? Mulberry Homes have been awarded the ‘2021 Gold Award for Customer Satisfaction’, and in previous years also been recognised at the ‘EMPD Architecture Excellence Awards’ and ‘Premier Guarantee Excellence Awards’.

FIRST HOMES We already offer an array of incentives and schemes to help make moving easier to those that need it. These include existing ‘Key Workers’ and ‘Help to Buy’ Schemes of which our Sales team and industry experts are always on hand to discuss. Mulberry Homes are proud to support the governments’ First Homes scheme, helping those who help us by supporting them get on to the property ladder. At Mulberry Homes we support existing communities, we build new communities, and we care about communities.

MULBERRY STRATEGIC LAND LTD