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The First Homes Scheme is a government programme that requires developers to sell a proportion of new homes at a minimum 30 percent discount to eligible buyers. The discount is permanent and must be passed on at resale. To access the scheme, you must meet a set of eligibility criteria designed to prioritise those who need it most.
You must never have previously owned a residential property, either in the UK or abroad. If you are buying with someone else, all buyers on the application must be first-time buyers. There is no exception to this rule. If one party in a joint purchase has previously owned a property, the application is disqualified.
Being a first-time buyer under the First Homes scheme uses the same definition as the one used for Stamp Duty Land Tax relief. Owning or having owned any residential property, including abroad, counts as previous ownership.
Some buyers are unsure whether a previous property interest counts. Inheriting a property, being named on a property as a minor, or having a legal interest in a property through a trust can all affect your first-time buyer status. If you have any uncertainty about this, let us know early so we can confirm your position before you proceed. Buying through a limited company does not work for First Homes. The scheme is available to individual buyers only.
There is a household income cap for First Homes buyers. Currently, the cap is 80,000 pounds per year for properties outside London and 90,000 pounds inside London. This is a combined household income figure, so if you are buying jointly, your combined earnings must fall within the limit. The cap is based on gross income before tax.
Local authorities have the option to restrict First Homes properties in their area to buyers with a local connection or to key workers such as police officers, nurses, and teachers. This is set at a planning condition level, so it varies by development and by council. Some First Homes developments are open to any eligible buyer. Others prioritise local residents first and open more widely only if no eligible local buyers come forward.
We help First Homes buyers navigate both the eligibility requirements and the mortgage application. Not all lenders offer mortgages on First Homes properties, and those that do have specific requirements. We handle this for you.
