Rotherham price cap revealed in new First Home scheme aimed at new buyers
The national scheme is expected to open in February next year - and Rotherham has the highest cap of its South Yorkshire neighbours
The Rotherham property price caps for the new Your First Home scheme have been revealed by the government.
It is hoped the national scheme, which is operation in areas across England, is expected to give would-be first-time buyers access to “a choice of both flats and smaller houses in most areas.”
Eligible buyers will be able to purchase a new-build home using a deposit of at least 2.5 per cent of the purchase price, a repayment mortgage from a participating lender and a government equity loan worth 20 per cent of the purchase price, interest-free for five years.
In Rotherham, the cap is £285,000 – the highest in comparison with South Yorkshire neighbours Sheffield at £260,000, Barnsley at £245,000 and Doncaster at £240,000.
Some parts of the country have price caps as high as £650,000, including areas of central London, such as Westminster, Kensington and Chelsea.
At the other end of the spectrum, the cap in North Lincolnshire will be £215,000, and in other areas, including Hartlepool, Middlesbrough and Redcar and Cleveland, it is £220,000, according to www.gov.uk.
The scheme is expected to open for applications in February next year, 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, 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 which 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.