What is the First Homes scheme?

For first-time buyers in England on incomes up to £80,000 (£90,000 in London).

Applies to: England Last checked against official sources: 6 October 2026

The First Homes scheme lets first-time buyers in England buy a home for 30% to 50% less than its market value.

You must be 18 or over and a first-time buyer.
You must earn no more than £80,000 a year before tax, or £90,000 in London.
You need a mortgage for at least half the price.
After the discount, a new build cannot cost more than £250,000, or £420,000 in London.
When you sell, you must pass on the same percentage discount to the next buyer.

Different in Scotland, Wales or Northern Ireland

Rules may be different in:

Scotland: Check mygov.scot for Scotland
Wales: Check gov.wales for Wales
Northern Ireland: Check nidirect for Northern Ireland

Key facts

30% to 50% off market value
Income limit £80,000 (£90,000 London)
Price cap £250,000 (£420,000 London)
England only

How the discount works

Developers offer First Homes to first-time buyers with at least 30% taken off the market value. The discount can be up to 50%. The home is valued independently, so the discount is real.

There is no rent to pay, unlike shared ownership. You own the whole home.

Limit	Outside London	London
Your income (before tax)	£80,000	£90,000
Price after discount (new builds)	£250,000	£420,000
Smallest mortgage	Half the price	Half the price

If you buy with other people, all of you must be first-time buyers and apply together. Your joint income from the last tax year must not be more than the limit.

Worked example

A new build flat outside London has a market value of £300,000 and a 30% discount.

Discount: 30% of £300,000 = £90,000
You pay: £300,000 minus £90,000 = £210,000
Smallest mortgage allowed: half of £210,000 = £105,000

The £210,000 price is under the £250,000 cap, so it qualifies.

Local rules

Your council can add its own rules for the first 3 months a home is on sale. For example, it may favour key workers or people who already live in the area. Members of the armed forces, some of their spouses or former spouses, and veterans who left in the last 5 years do not have to meet these local rules.

How to apply

Tell the developer, or the estate agent if it is a resale, that you want to buy through First Homes.
They check you are eligible, help with the form and send it to the council.
Choose a conveyancer (a solicitor or licensed conveyancer who does the legal work).
Get a mortgage for at least half the price.
Sign the legal documents your conveyancer sends.
Your conveyancer asks the council for permission to exchange contracts.

You may pay a reservation fee on a new build. You get it back if your application fails. Developers can offer extras, like cash back, worth up to 5% of the discounted price.

Letting and selling later

Letting: you can usually let the whole home for no more than 2 years in total. Tell the council and get your lender's agreement first. You can rent out a room for as long as you like if you still live there.
Selling: you must sell to an eligible first-time buyer at the same percentage discount, based on the value at the time.

Example: you bought at 30% off. Years later the home is valued at £320,000. You must sell for £320,000 minus 30% (£96,000), which is £224,000.

If you cannot sell after 6 months, or it would cause you severe hardship, you can ask the council to let you sell at full price. You then pay the discount percentage back to the council.

Related guides

Where this comes from

Get it done

This takes you to the official service, which is free to use.

How to apply for First Homes

Common questions

Is there rent to pay with First Homes?

No. Unlike shared ownership, you own the whole home and there is no rent to pay.

Can I rent out my First Home?

Usually only for up to 2 years in total while you own it, and you must tell the council and get your lender's agreement.

Can a couple buy together?

Yes, but you must all be first-time buyers, apply together, and your joint income must not be more than the limit.

Official sources

1.First Homes scheme: eligibilitywww.gov.uk/first-homes-scheme/eligibility
2.First Homes scheme: how the scheme workswww.gov.uk/first-homes-scheme/how-the-scheme-works
3.First Homes scheme: selling the propertywww.gov.uk/first-homes-scheme/selling-the-property
4.First Homes scheme: letting the propertywww.gov.uk/first-homes-scheme/letting-the-property

Checked against GOV.UK on 6 October 2026

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