Handle First Homes discounts with care, government told

Plans to offer first-time buyers money off a new home should not deflect from the need to build affordable houses to rent, according to the Local Government Association.

Last week the government published a consultation on its First Homes proposals, which could see see thousands of young people as well as military veterans, nurses, police and fire-fighters become eligible for discounts under the scheme.

But David Renard, housing spokesman for the LGA, said not everybody was ready to buy. He added: “We will be making the case in this consultation that local areas will need discretion on the number of First Homes required in new developments.

”This will allow councils to ensure that a mix of homes to rent and buy are available and affordable to people that need them.”

Renard said a genuine renaissance in council housebuilding would increase supply, boost home ownership and reduce homelessness.

And he called on the chancellor Sajid Javid to reform Right to Buy in next month’s Budget by allowing councils to keep receipts of homes sold in full and to have the flexibility to set discounts locally.

But while the LGA was cautious about the government’s proposals the National Federation of Builders was more supportive.

Richard Beresford, its chief executive, said it was welcome news to hear the government say the First Homes scheme would be for larger developments “because currently, smaller sites deliver proportionately more affordable housing than larger ones”.

He added: “It’s also fantastic that the government listened to our recommendations to support key workers.”

But Beresford did say that more clarification was needed on the scheme.