First Homes
New build homes at 30% to 50% off market value for eligible first-time buyers.
Reviewed and signed off by Patricia Ogunfeibo
Solicitor and Chartered Tax Adviser, both non-practising. UK property since 1986.
Last reviewed
- Applies to:
- England
- Last reviewed:
- Next review:
- November 2026
Checked against GOV.UK. Sources are listed at the end of this guide.
Scheme and lender rules can change. How we label evidence.
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Executive Summary
First Homes is a government scheme offering new build properties to first time buyers in England at a discount of at least 30% off market value. Unlike shared ownership, you own the property outright. The discount is attached to the property permanently, meaning every future buyer also benefits from the same percentage discount.
How First Homes Works
First Homes (gov.uk) is a government scheme offering new build properties to first time buyers in England at a discount of at least 30% off market value. Unlike shared ownership, you own the property outright. The discount is attached to the property permanently, meaning every future buyer also benefits from the same percentage discount.
| Feature | Details |
|---|---|
| Discount | At least 30% off the open market value. Local councils can set higher discounts of 40% or 50% if local need justifies it. |
| Price cap | After the discount, the property cannot cost more than £250,000 (or £420,000 in Greater London). Local councils may set lower caps. |
| Ownership | Full ownership. No rent to pay, unlike shared ownership. |
| Resale restriction | When you sell, the same percentage discount must be passed to the next eligible buyer. The sale must be approved by the local authority. |
| Mortgage requirement | You must take out a mortgage covering at least 50% of the discounted purchase price. |
Eligibility and Availability
- First time buyer: If purchasing jointly, all buyers must be first time buyers
- Income: Household income must not exceed £80,000 per year (£90,000 in London)
- Local connection: Councils may set local eligibility criteria for the first 3 months a property is on sale, such as requiring a local connection or key worker status
- Armed Forces: Members of the Armed Forces and veterans are exempt from local connection requirements
First Homes availability is limited and varies by area. There is no central database. Check developer websites, local authority planning portals, and the Share to Buy portal for current listings. Properties in high demand areas can sell quickly.
Action Checklist
Where this comes from
Each source is labelled so you can tell a government rule from market practice, and both from our own view. Read our evidence standard.
- Government ruleGOV.UK, First Homes scheme
- Our guidancetenant2owner editorial standards and our own interpretation
Your next steps
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