Your First Home Developer Fee Rates published today
While full details on house price caps and the other scheme parameters are still awaited, the Government has published more details of the new Your First Home Developer Fee Rates and scheme today (see link below).
Eligible buyers will be able to purchase a home using:
- a deposit of at least 2.5% of the purchase price
- a repayment mortgage from a participating lender
- a government equity loan worth 20% of the purchase price, interest free for 5 years
The scheme is expected to open for applications in February 2027. Only a few sample price caps and income thresholds have so far been published.
Interestingly as house prices start to fall in the face of mounting affordability pressures, the equity loan element fluctuates at repayment by the homeowner, so if prices drop, the amount of equity loan that has to be repaid on sales goes down.
ANYWAY here’s the bit you want to see – published Developer Fee Rates:
Your First Home Developer fee rates
| Homes sold each year through the scheme | Fee rate |
| First 100 homes | 1% |
| Homes 101 to 250 | 3% |
| Homes above 250 | 4% |
The rates apply progressively.
For example, a developer selling 500 homes through the scheme would pay:
- 1% on the first 100 homes
- 3% on the next 150 homes
- 4% on the remaining homes
This equates to an average contribution of 3.1%
It’s a step in the right direction, depending on full details of all parameters, many of which are yet to be published. However, the Office for Budgetary Responsibility believes the limited overall size of the programme means it is likely to have only a minimal effect.
Your thoughts?
James Scott
MD
(Don’t forget to contact us next time you have a truss, joist, panel or timber frame project!)
