The Homes and Communities Agency has published the prospectus for the government’s new shared equity scheme, inviting developers to put sites forward.
The FirstBuy scheme was announced in last month’s Budget and is designed to assist 10,000 first time buyers over the next two years.
It offers equity loan funding of up to 20 per cent of the house price split equally between the government and the housebuilder.
It will be administered by the HCA as part of the Affordable Homes Programme and the first contracts will be signed in the summer.
The first homes will be made available through the scheme by September.
Housebuilders have urged government to implement the scheme earlier, arguing its close resemblance to the previous administration’s Home Buy Direct scheme means it could be delivered within three months rather than six.
There will be separate contracts for delivery in London and for allocation for delivery out of London.
The initial stage in implementing FirstBuy is the launch of the competition for housebuilders to offer new build homes for the initiative.