What is the First Homes Scheme?

Please note the First Homes Scheme is only available in England.

The First Homes scheme is a government incentive to help first time buyers and key workers get onto the property ladder. Sellers offer eligible homes at a discount of 30% to 50%. The scheme aims to keep homes buyers in the local area.

The scheme is open to anyone who meets the eligibility criteria (see below). Local councils will be able to give priority to certain groups of buyers.

What is the First Homes Scheme eligibility criteria?

To be eligible for the First Homes scheme you must:

• be aged 18 or over
• be a first time buyer (if you’re buying with others, you must all be first time buyers)
• be able to get a mortgage for at least 50% of the value of the home
• earn less than £80,000 or £90,000 if the property is in London before tax. If you’re buying with others, your combined household income must be less than these amounts.

The local authority set additional local eligibility criteria, aimed at priority groups to give the discount to, such as:

• key workers (as defined by each council)
• those who already live in the area
• lower earners

The local criteria is in place for the first three months the home is on the market. After that they may life the criteria and open the home to others.

Armed Forces

If you are an active member of the Armed Forces or left within the last 5 years, local criteria do not apply to you.

This is also true of anyone whose ex-spouse or civil partner is a member of the Armed Forces. Or if you are a widow or widower of a deceased member of the Armed Forces. Their service must have related to their death.

You must still meet all other eligibility criteria.

How does the First Homes Scheme work?

First, find a home that is available to buy under the First Homes Scheme. The maximum price must be £250,000 after the discount, or £420,000 in London. Councils have the ability to lower this threshold.

An independent surveyor will need to value the home sold through this scheme. This is to check that the price is in line with market value.

Should the house be a new build?

The home can be either a new build home (e.g. under construction or recently built), or a home bought through the scheme by somebody else, and you are buying it off them. The resale would be via an estate agent.

How do I apply for the First Homes Scheme once I’ve found a house?

The developer will check you meet the eligibility criteria, and help you complete the application. They will submit this to the council for you.

If your application is successful, you will need to apply for a mortgage. The mortgage must cover at least half of the cost of the home.

You will also need to instruct a conveyancing solicitor. The council will contact your conveyancer, developer, and mortgage advisor if you have one. They will do this before agreeing to your discount.