The fee will be a percentage of the final sale price and will apply to properties sold using the scheme. The contributions will support the running costs of the scheme.
The fee rate starts at 1% on the first 100 homes sold each year through the Your First Home scheme, rising to 3% on the sale of 101-250 homes, and 4% on the sale of more than 250 homes.
It calculated that a developer selling 500 homes through the scheme would contribute 3.1% on average, paying 1% on the first 100 homes, 3% on the next 150 homes and 4% on the remainder.
The Ministry of Housing, Communities and Local Government (MHCLG) said developers of all sizes should be able to participate in the scheme, subject to meeting its requirements and entering a participation agreement.
A spokesperson for the Home Builders Federation (HBF) said: “Whilst the rates are higher than we pushed for, which could impact the overall size of the scheme and so the resultant increase in housing supply, it is important that, as with Help to Buy, SMEs have a good chance to participate in bringing the scheme to their homebuyers.”
Episode 6: What’s next for the industry? : Powered by Partnership podcast from Newcastle for Intermediaries
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