What discount do you get with First Homes?

The minimum discount is 30% off market value, but local authorities can increase this to 40% or 50% in areas where affordability is a bigger issue. The discount stays with the property forever - when you sell, the next buyer also gets the same percentage discount.

Who qualifies for the First Homes Scheme?

You must be a first-time buyer, be able to get a mortgage for at least 50% of the discounted price, and have a household income under £80,000 (£90,000 in London). Key workers and local residents often get priority.

What's the maximum price for First Homes?

After the discount, the price cannot exceed £250,000 nationally or £420,000 in London. So a home with a 30% discount could have a full market value of up to £357,000 (or £600,000 in London).

Can you sell a First Homes property?

Yes, but you must sell at the same percentage discount you bought at. So if you bought with a 30% discount, the next buyer must also get 30% off the market value at the time of sale. You keep any equity gained from property value increases.

How is First Homes different from Shared Ownership?

With First Homes you own 100% of the property outright with a discounted price. Shared Ownership means buying a share (25-75%) and paying rent on the rest. First Homes offers better value if you can afford the full discounted price.

First Homes Scheme 2025

Government scheme offering 30-50% discounts on new build homes for first-time buyers and key workers

What is the First Homes Scheme?

First Homes is a government scheme offering first-time buyers a 30-50% discount on new build properties. The discount is locked to the property permanently, homes are capped at £250,000 after discount (£420,000 in London), and priority is given to key workers and local residents. You need a household income under £80,000 (£90,000 in London) and must get a mortgage for at least 50% of the purchase price.

30-50% Discount

Minimum 30% off market value, with local authorities able to increase to 40% or 50%

100% Ownership

Unlike Shared Ownership, you own the entire property outright with no rent to pay

Key Worker Priority

NHS, teachers, police, and emergency services get priority access to available homes

First Homes Eligibility Criteria

You Must Be

A first-time buyer (never owned property anywhere in the world)

Able to secure a mortgage for at least 50% of the discounted price

Earning under £80,000 household income (£90,000 in London)

Over 18 years old

Restrictions to Know

Must be your main residence - no buy-to-let

Discount stays with property when you sell

Limited to new build homes from participating developers

You must try to sell to eligible buyers first

Key Worker Priority Categories

Local authorities can give priority to key workers in their area. The following professions typically qualify:

NHS Staff

Nurses, doctors, paramedics, healthcare assistants

Teachers

School teachers, teaching assistants, early years educators

Police Officers

Police constables and community support officers

Prison Officers

Prison and probation service staff

Armed Forces

Military veterans within 5 years of leaving service

Social Workers

Children's and adult social care workers

Fire Service

Firefighters and fire control staff

First Homes vs Other Schemes

Feature	First Homes	Shared Ownership	Help to Buy ISA
How it works	30-50% discount on price	Buy 25-75% share	25% bonus on savings
Ownership	100% ownership	Partial ownership	100% ownership
Rent to pay?	No	Yes, on unowned share	No
Property types	New builds only	New and resale	Any property
When selling	Must sell at same discount	Keep equity on your share	No restrictions

How to Apply for First Homes

Find a First Homes Development

Search for new build developments offering First Homes in your area through developer websites or local authority housing teams.

Check Your Eligibility

Confirm you meet the first-time buyer and income criteria. Local connection or key worker status may give you priority.

Get a Mortgage in Principle

Speak to a broker experienced with First Homes. You'll need a mortgage for at least 50% of the discounted price.

Reserve and Complete

Reserve your property, complete the legal process, and move in. A legal restriction is placed on the property to maintain the discount for future buyers.

Pros and Cons of First Homes

Advantages

Significant discount (30-50% off market value)

100% ownership - no rent on any portion

Lower deposit needed (based on discounted price)

Key worker priority access

Keep equity gains when property values rise

Disadvantages

Limited availability - new builds only

Discount stays with property when selling

Must sell to eligible buyers first

Cannot use for buy-to-let

Income caps may exclude some buyers