First Homes Scheme UK — Discounted Housing Guide

First Homes offers first-time buyers significant discounts. Here’s how to find and buy one.

What Is First Homes?

The Basics

Feature	Details
Type	Discounted sale (not shared ownership)
Discount	At least 30% off market value
For	First-time buyers
Property	New builds (mostly)
Permanent	Discount stays forever

How the Discount Works

Market Value	With 30% Discount
£200,000	£140,000
£250,000	£175,000
£300,000	£210,000
£350,000	£245,000

Price Caps (After Discount)

Location	Maximum Price
Outside London	£250,000
Inside London	£420,000
Some local areas	Lower caps

Eligibility

National Criteria

Requirement	Detail
First-time buyer	Never owned before
Age	18+
Household income	Under £80,000 (£90,000 London)
Mortgage	Must be at least 50%
Citizenship	Right to buy in UK

Local Authority Priority

Councils Can Prioritise
Local residents	Live in area
Local workers	Work in area
Key workers	NHS, teachers, emergency services
Armed forces	Military connection

Priority Examples

Council Might Require	Example
Live locally	3+ years in borough
Work locally	Employed in area
Key worker status	Verified employment
Local connection	Some tie to area

Finding First Homes

Where to Look

Source	What to Do
Developers	New build sites
Estate agents	Listed as First Homes
Local council	Housing team
Help to Buy agent	May have listings
Rightmove/Zoopla	Filter by scheme

How Properties Are Sold

Priority Period	Who Can Buy
First 3 months	Local priority buyers
After 3 months	Any eligible FTB
Then	May be released nationally

How to Buy

Application Process

Step	Action
1	Find First Home property
2	Check eligibility
3	Apply through developer/agent
4	Eligibility verified
5	Get mortgage
6	Legal process
7	Complete purchase

Documents Needed

Document	Purpose
Proof of income	Under threshold
Mortgage AIP	Shows you can buy
ID documents	Identity verification
First-time buyer declaration	Never owned property
Local connection	If local priority

Mortgage for First Homes

Getting a Mortgage

For First Homes
Minimum mortgage	50% of discounted price
Standard process	Like normal purchase
Most lenders	Offer on First Homes
Valuation	Based on discounted price

Example

Property	Amount
Market value	£250,000
After 30% discount	£175,000
Minimum mortgage (50%)	£87,500
Your deposit	Remainder

Deposit Needed

If Mortgage 75%	Deposit
Discounted price £175,000
Mortgage 75%	£131,250
Deposit needed	£43,750

When You Sell

Restrictions

Rule	Detail
Discount stays	Same % off future market value
Buyer eligibility	Must meet First Homes criteria
Price	Market value minus discount %
Marketing	3 months to eligible buyers

Sale Process

Step	What Happens
1	Get market valuation
2	Calculate discounted price
3	Market to eligible buyers
4	3 months for eligible buyer
5	If none, council may buy
6	May be released to anyone

Selling Example

Original Purchase	Future Sale
Market value £250,000	Market value £300,000
Discount 30%	Discount still 30%
You paid £175,000	You sell for £210,000
Your gain	£35,000

Larger Discounts

40-50% Discounts

Some Areas	Offer More
Certain councils	Up to 50% off
Local decision	Check your area
Same rules	Otherwise apply

Comparing to Other Schemes

First Homes vs Shared Ownership

Feature	First Homes	Shared Ownership
Discount	30-50%	Buy 25-75%
Own	100% outright	Your share
Rent	None	On unowned share
Resale	To eligible FTB	Some restrictions
Staircasing	N/A	Can buy more

First Homes vs Help to Buy

Feature	First Homes	Help to Buy
Type	Discount	Equity loan
Repayment	N/A	Repay equity loan
Price cap	£250k/£420k after discount	£600,000
Status	Current	Closed to new apps

Pros and Cons

Advantages

Pro	Benefit
Large discount	30%+ off
Own outright	No rent to pay
No equity loan	Nothing to repay
Permanent	Discount stays
Lower mortgage	Smaller loan needed

Disadvantages

Con	Issue
Resale restrictions	Must sell to eligible buyer
Limited supply	Not many properties
Location limited	Where they’re built
New build premium	May pay more than secondhand
Price cap	Limits property size/location

Local Authority Variations

What Councils Can Change

Aspect	Council Can Set
Discount percentage	30-50%
Local price cap	Lower than national
Priority groups	Who gets first chance
Income cap	Lower than national
Local connection	Requirements

Finding Your Council’s Rules

Step	Action
Contact	Local planning team
Check	Housing strategy docs
Search	Council website
Ask	Estate agents in area

Eligibility Checking

Who Verifies

Body	Role
Developer	Initial check
Help to Buy agent	May verify
Solicitor	Legal checks
Local authority	If local priority

Common Issues

Issue	Solution
Previously owned	Not eligible
Income too high	Check household total
Can’t get mortgage	Improve finances
Not priority	Wait for open period

Summary

Key Facts

Item	Detail
Discount	At least 30%
Price cap	£250,000 (£420,000 London)
Income limit	£80,000 (£90,000 London)
Must be	First-time buyer
Mortgage	Minimum 50%

Process Checklist

Step	Done?
Check eligibility	☐
Check local priority	☐
Find properties	☐
Get mortgage AIP	☐
Apply through developer	☐
Verify eligibility	☐
Complete purchase	☐

Useful Contacts

Resource	For
gov.uk/first-homes	Official information
Local council	Local rules and priority
Developers	Available properties
Help to Buy agent	Some areas