First Homes – Interim Position Statement

3. Terms- Local variations

3.1 The national terms to be used for the qualifying criteria for what constitutes a First Home and eligibility criteria to apply for a First Home are summarised in section 2. Local authorities and neighbourhood planning groups by preparing a neighbourhood plan can vary these criteria and add additional criteria based on local evidence and these local criteria would be time limited for the first 3 months from the start date of marketing the property. Local plans should set out policies for the level and type of affordable housing including the minimum of 25% of affordable homes being First Homes.

Discount

3.2 Local authorities can set a deeper minimum discount at either 40% or 50% and impose lower price caps if they can demonstrate a need for this through evidence. However, the same level of discount must apply each time such houses are sold in perpetuity secured through a planning obligation.

3.3 The council is considering the case for local evidence given the proximity of parts of Buckinghamshire to the more expensive London and indeed the south east of England housing market. Neighbourhood planning groups would also need to prepare their own evidence to support neighbourhood plan policies which go beyond the national parameters.

Local connection

3.4 Local authorities will be able to apply additional criteria at a local level such as, setting a lower income cap, prioritising key workers (locally defined) and/or specify a particular local connection requirement based on work or current residency (excepting those with military connections).

3.5 If local authorities or neighbourhood planning groups choose to introduce their own eligibility restrictions, these will still be time-limited to the first three months from the start date of marketing of the property. Upon expiry of the three-month period, any homes which have not been sold or reserved will revert to the national standard criteria and these will apply to all future sales of a First Home.

3.6 The council will require First Homes in the Buckinghamshire Council area (that are not already subject to local connection criteria such as through a Neighbourhood Plan) to be prioritised for the first three months of marketing to eligible applicants in the following priority order:

  1. Those who have:
  • lived in the ‘area’ continuously for at least two years immediately prior to exchange of contracts for the relevant First Home or
  • been in continuous employment in the ‘area’ for at least two years immediately prior to exchange of contracts for the relevant First Home and have worked a minimum of 24 hours per week throughout that period
  • been living outside the ‘area’ but employed or with a firm job offer within the Buckinghamshire Council area that falls within the definition of ‘keyworker’
  1. Those who have:
  • lived in the ‘area’ continuously for at least one year immediately prior to exchange of contracts for the relevant First Home or
  • been in continuous employment in the ‘area’ for at least one year immediately prior to exchange of contracts for the relevant First Home and have worked a minimum of 24 hours per week throughout that period.

Where ‘area’ is the Local Plan area these applicants shall be prioritised for the first month of marketing before extending priority to people meeting one or more of the above local connection criteria from the wider Buckinghamshire Council area for the remaining two months of marketing.

Price cap

3.7 The council can impose a lower price cap than £250,000 if it can demonstrate a need for this through evidence. It may be that there needs to be different price caps reflecting the housing markets in the south nearer to London than the north of the country nearer to the Midlands.

Key worker

3.8 The council wishes to restrict First Homes with local eligibility restrictions so that First Homes have the best chance to be sold to local people and key workers. The Council prioritises Key workers for the eligibility criteria to apply for a first home with the following definition. Key workers are:

  • clinical staff employed by the NHS to include ambulance drivers, paramedics, healthcare workers
  • providing care services (including those working in care homes)
  • police officers, community support officers, and frontline police staff
  • uniformed staff in the Fire & Rescue Service
  • prison officers, and frontline prison staff
  • probation officers
  • public sector employed teachers, social workers, planning and building control officers, environmental health officers, occupational therapists, speech therapists and educational psychologists
  • other critical workers that the council acting reasonably shall approve

Local evidence

3.9 The council will consider the case for local evidence for the discount and price cap given the proximity of parts of Buckinghamshire to the more expensive London and indeed the south east of England housing market. This matter will be taken forward in the evidence gathering stage for the Local Plan 4 Buckinghamshire. Neighbourhood planning groups may also prepare their own evidence to support neighbourhood plan policies on First Homes discount and price cap.