First Homes scheme

A lower price with lasting conditions

First Homes is an England scheme for eligible first-time buyers. The property can be a new home offered by a participating developer or an existing First Home being resold. Availability depends on homes actually being offered in the area.

The discount is 30%–50% of independently assessed market value. You buy the whole home, so there is no rent payable on an unowned share under this scheme. First Homes is separate from Shared Ownership and from the announced Your First Home equity-loan scheme. Read the official First Homes overview.

Check the buyer and the property

Buyers must be at least 18, be first-time buyers and be able to obtain a mortgage for at least half the discounted purchase price. If purchasing together, all buyers must be first-time buyers and apply together.

The annual income limit before tax is £80,000, or £90,000 for a London property, using income from the previous tax year. Joint buyers are assessed against the joint limit. Councils may also apply local criteria, such as a local connection, key-worker priority or a lower income threshold.

For new-build First Homes, the price after discount cannot exceed £250,000 outside London or £420,000 in London; a council can set a lower cap. The council checks scheme eligibility, while a lender makes its own affordability and credit decision. See the full eligibility and application guidance.

Keep the ownership budget realistic

A discounted price does not remove the normal costs of buying and running a home. Establish the cash deposit your lender requires and leave enough for the transaction and a practical household buffer.

Your conveyancer should explain the scheme restriction, tenure, lease terms where relevant and any charges attached to the property. Review these alongside the mortgage, rather than deciding from the headline discount alone.

• Allow for mortgage and legal fees, a survey, moving expenses and any applicable Stamp Duty Land Tax.
• Check service or estate charges, buildings insurance and maintenance responsibilities.
• If a reservation fee is required, understand the terms before paying. GOV.UK says a new-build reservation fee is refunded if the scheme application is unsuccessful.

Know what happens when life changes

The home must be your only or main residence. Letting it is restricted and may require council and lender involvement, so discuss a possible move or change of use before relying on rental income.

When selling, you normally sell to another eligible First Homes buyer and pass on the same percentage discount, calculated against the home's market value at that time. Tell the council before marketing. Exceptional permission to sell on the open market can involve returning the discount percentage to the council.

An increase in your income after purchase does not itself mean you have to sell. What matters is understanding the ownership, letting and resale conditions that continue to apply.

The next steps

1. Find a qualifying home

   Ask the developer or estate agent about the discount and local criteria.

2. Check the purchase plan

   Bring the details for a review of your deposit, mortgage and overall costs.

3. Coordinate the application

   The developer or agent submits the scheme application; your lender and conveyancer handle their respective checks.

What to prepare

Tick the points you have covered before a conversation. These are preparation notes; ticking them does not confirm eligibility.

• Listing, full market value and discounted purchase price
• First-time buyer status for everyone purchasing
• Previous tax-year income and available deposit
• Council criteria, reservation terms and ongoing property charges

Official guidance

Checked 30 October 2026. Availability, rules and lender criteria can change. Follow the official guidance and confirm the position before committing.

• GOV.UK: First Homes scheme and eligibility
• GOV.UK: complete First Homes guide
• GOV.UK: the separate Your First Home announcement