First Homes Scheme
First Homes is a Government-backed scheme designed to help more first time buyers onto the property ladder. First Homes are available for sale with a discount of at least 30% of the market value, on selected new-build homes in England, up to a maximum price of £250,000 or £420,000 in Greater London after the discount is applied (or any lower price cap set by the local authority).
First Homes is subject to availability, status, national and local eligibility, terms and conditions*.
What is First Homes?
- A Government-backed scheme designed to help first time buyers own their own home in England.
- Under the scheme, homes are offered for sale with a discount of at least 30% of market value.
- Exclusively available on selected new-build homes in England, up to a maximum price of £250,000 (after the discount has been applied). In Greater London, the maximum price is £420,000 (after the discount has been applied). Local authorities may set a lower price cap.
- The First Homes discount and provisions will apply to the future sales of the property. This means the same percentage discount as applied to the original sale will be passed on to the new buyer, who must first have been approved by the local authority as meeting the First Homes Eligibility Criteria. This process will apply every time the property is sold, to help other first time buyers in the future.
First Homes eligibility criteria
- Available to first time buyers only (if the home is being purchased by more than one person, all must be first time buyers).
- All buyers’ joint gross income must not exceed £80,000 per year (or £90,000 per year for First Homes in Greater London).
- Buyers will need to meet local eligibility criteria (if any) set by the local authority, such as a lower joint gross income cap, and/or at least one buyer having a local connection or being a keyworker. A lower income cap level and/or Local connection and keyworker status is as determined by the local authority.
- You must be able to obtain a mortgage (or home purchase plan) for at least 50% of the discounted purchase price.
- A property purchased using First Homes must be the buyers' only/main residence during ownership of the property.
First Homes FAQs
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First Homes is a government-backed scheme to help first time buyers in England get on the property ladder. They will be able to buy a new-build home with a discount of at least 30% on market value. In some areas, the discount can be as high as 40% or 50%.
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The First Homes scheme is available on selected brand-new homes in England.
For example, if you’re a first time buyer and are interested in one of the selected properties priced at £350,000, you could buy it for £245,000 (where a 30% First Homes discount applies).
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To apply for the First Homes scheme, you’ll need to
- Be a first time buyer whose joint gross annual income (combined if couples or group purchasers) does not exceed £80,000 or £90,000 for First Homes in Greater London (or any lower joint annual income cap, set by the local authority).
- Meet the local eligibility criteria set by the local authority (if any), which could include having a local connection, or being a key worker, and/or having a lower joint annual gross income level.
- Be able to get a mortgage for at least 50% of the discounted purchase price.
- Have the First Homes property as your main residence during your ownership of the property.
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The First Homes scheme is available only on selected properties. Explore our collection of brand-new homes to find out if the First Homes scheme is available on the home you want to buy.
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Yes. First Homes properties cannot cost more than £250,000, or £420,000 in Greater London after the discount has been applied, but local authorities can set a lower price cap. The price cap will only apply to the initial sale of the property to you, it does not apply to any subsequent sale of the property.
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Buying your new-build home with the First Homes scheme means you’ll have full ownership.
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The First Homes scheme will apply to the home forever (subject to limited exceptions), meaning each future buyer and the local community will continue to benefit from it every time the property is sold.
This means that if you are ready to move on, you must notify the local authority and when selling your home you must apply the same discount to market value that you received on your purchase, and only sell to buyers that have been approved by the local authority as meeting the First Homes Eligibility Criteria (including any local eligibility criteria set by the local authority at that point in time). Your solicitor/conveyancer will run through the full details with you.
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Yes, both need to be first time buyers.
If the First Home is being purchased by a couple (who are married, in a civil partnership or living together) but only one of them can obtain a mortgage (e.g. where one of the couple has a poor credit history) it is still possible to progress with the First Homes scheme, but both adults in the couple must be first time buyers and both will need to complete the Application Pack, supply the supporting evidence documents and sign the Legal Declarations that they meet the First Homes Eligibility Criteria.
When selling a property purchased using First Homes, the seller will only receive the discounted market value (i.e. 70% of its market value if the First Homes discount was 30%) not full market value, and must only sell to a buyer that meets the First Homes eligibility criteria (including any local authority’s local eligibility criteria in force at that time). The percentage discount cannot change, even if you have made improvements to your home or if market values increase of decrease.
The First Homes scheme: first time buyer's guide explains in more detail the First Homes scheme including the application process, FAQs in respect of First Homes ownership, restrictions on letting the home and the process for selling. Further information is available at: www.ownyourhome.gov.uk/scheme/first-homes.