By Ahmed Abdelsalam
The UK government has published property price caps for its new Your First Home scheme, setting maximum purchase prices for first-time buyers across England.
Price caps vary by region
Caps range from £215,000 in North Lincolnshire to £650,000 in central London boroughs such as Westminster, Kensington and Chelsea, and the City of London. Other low-cap areas include Hartlepool, Middlesbrough, and Redcar and Cleveland at £220,000.
Scheme mechanics
Eligible buyers can purchase a new-build home with a minimum 2.5% deposit, a repayment mortgage from a participating lender, and a government equity loan worth 20% of the purchase price, interest-free for five years. Applications open in February, with first sales expected in April. Buyers must be first-time purchasers, use the property as their main home, and have household income of £110,000 or less outside London, or £140,000 or less within London.
Expert reaction
Connells group research director Aneisha Beveridge said the caps should give first-time buyers access to a choice of flats and smaller houses in most areas, ensuring healthy take-up. She noted the caps may help revive the flat market by encouraging buyers to consider apartments to benefit from the interest-free equity loan.
Full list available
The complete list of price caps for every local authority area in England has been published on the gov.uk website.
