RICS works with UK Government on 'First Homes' scheme

In June 2021, the government announced the ‘First Homes’ scheme.

First Homes are a form of affordable housing, sold to first-time buyers at a discount of at least 30 percent against market value. The percentage discount remains attached to the property in perpetuity, so that future first-time buyers can also benefit from the scheme. Local authorities can choose to set the discount at 40% or 50% instead of 30%.

RICS have been working in close collaboration with MHCLG to ensure that RICS guidance in this space is recognised and aligned given the vital role an independent valuation will play in this process. Supporting information for RICS Professionals in relation to this scheme has been jointly agreed with MHCLG.

Housing Secretary Robert Jenrick MP, said: “Enabling more people to buy their own homes is at the heart of the mission of this Government, and First Homes will offer a realistic and affordable route into home ownership for even more people who want to own their own home.

“Thanks to First Homes, we will offer more homes to local people and families, providing a route for first-time buyers to stay in their local areas rather than being forced out due to rising prices.

“First Homes will also support our fantastic key workers who are looking to get their first foot on the housing ladder – from front-line doctors and nurses to delivery drivers and supermarket staff – by giving many of them the chance to buy a home at a 30% discount.

“These homes will be locked in for perpetuity to first-time buyers and key workers from their local area – making them an asset to both their owners and the wider local community.”

Minister of State for Housing, Christopher Pincher said: “I’m delighted that MHCLG has worked in close collaboration with RICS, to deliver guidance to surveyors and ensure First Homes customers are able to benefit from the independent valuation expertise of RICS members.

This will ensure the integrity of the scheme will be upheld and customers will receive a genuinely priced First Home today and in the future.”

RICS Senior Specialist of Land & Property Standards, Nigel Sellars said: "RICS are delighted to have collaborated with MHCLG on the First Homes initiative. Accurate and transparent property valuation is essential to the mortgage lending process.

With independent valuations undertaken by valuers adhering to RICS best practice valuation standards - this provides assurance and confidence to all stakeholders in the process."

Valuers should always be cognisant of their broader requirements and RICS guidance, as stated in the ‘RICS Valuation - Global Standards’ (‘Red Book’), ‘RICS Valuation - Global Standards 2017: UK national supplement – ‘UK VPGA 11 Valuation for residential mortgage purposes’ and the RICS Residential Mortgage Valuation Specification contained in UK Appendix 10 of the January 2014 (revised April 2015) edition of RICS Valuation – Professional Standards UK and the Valuation of individual new-build homes, 3rd edition.