First Homes
- Deposit required: Normally at least 5% of the discounted purchase price, depending on the property and on mortgage eligibility from participating mortgage lenders.
- Ownership: Full Ownership
- Headline benefits: Homes discounted by at least 30% compared to market prices, making deposits and mortgage repayments significantly cheaper.
- Headline requirements: First time buyer, earning less than £80,000 per year (£90,000 in London), or a lower figure if set by the council. Mortgage to cover at least 50% of purchase price. Councils can apply additional eligibility criteria, such as restricting the scheme to key workers or people with a local connection.
Overview
First Homes is a new scheme designed to help local first time buyers and key workers onto the property ladder, by offering homes at a discount of at least 30% compared to the market price. In some areas the discount could be as high as 50%, providing even greater savings.
The discounts will apply to the homes forever, meaning that generations of new buyers and the local community will continue to benefit every time the property is sold.
Getting first time buyers on the housing ladder and helping people to own their own homes in the places where they live and work.
Local first-time buyers and key workers
- Purchasers of First Homes must be first-time buyers and must have a household income not exceeding £80,000 and £90,000 in London (or lower if set by the local authority)
- Post-discount price caps on first sale of the property of £250,000 across England and £420,000 in London (or lower if set by the local authority)
- A First Home should be the buyer’s only home and a purchaser will need to use a mortgage or home purchase plan for at least 50% of the purchase price of the home
- Local connections and/or key worker status as determined by the relevant local authority
First Homes properties first went on the market in June 2021 and the first few were sold and occupied in November 2021.
Working in partnership with Homes England, local authorities and developers, the government is delivering a national programme of up to 1,500 First Homes in up to 100 locations across England. This programme is due to conclude in November 2023.
First Homes are also starting to become available on new construction sites across England as developers and local authorities incorporate them into their development plans, and this is set to increase over the coming years.
This scheme is only available in England.
First Home properties should, in time, be available throughout England. A programme is underway to deliver up to 1,500 First Homes in up to 100 locations across England, and this is due to conclude in November 2023.
First Homes are also starting to be made available on new construction sites across England as developers and local authorities incorporate them into their development plans, and this is set to increase over the coming years.
First Homes will be offered on a limited number of plots in most new developments once the scheme is fully up and running.
First, you will need to check whether the builder is currently including First Homes as part of the development. If they are, you must meet the eligibility criteria and apply through the builder.
In time, First Homes that have been owned previously will start to become available through the open market. To buy one, you must meet the eligibility criteria and apply through the estate agent that is marketing the home.
More information is available at First Homes scheme.
Start by checking whether the builder is currently offering the scheme on the development where you want to buy. First Homes does not have an application deadline and is open to eligible applicants whenever plots are available. You will then apply to have your eligibility confirmed when you are ready to reserve a plot under the scheme.
Application processing may vary based on the location. For more information check with the builder.