First Homes
New-build homes sold at 30–50% below market value, with the discount locked in for every future sale.
- Who it's for
- First-time buyers aged 18+
- Price cap
- £250,000 outside London, £420,000 in London (post-discount)
- Income cap
- £80,000 household (£90,000 in London)
- Status (April 2026)
- Live, accepting new applicants.
How it works
Local authority-led scheme with local-connection priority for the first 3 months. Household income must be ≤ £80,000 (£90,000 in London). Armed forces members and recent veterans are exempt from the local-connection rule. You must fund at least 50% of the discounted price with a mortgage — no cash-only buyers. Discount is set by the local authority in the 30–50% range.
Official source: https://www.gov.uk/first-homes-scheme
Frequently asked
Will First Homes cost me more or less in the long run?
Up front, it's cheaper — you pay 30-50% less than market value. But because the discount attaches to the property for every future sale, your capital growth is proportional to the discounted price, not the full market price. It's a genuinely good route onto the ladder; it is not a way to outperform the market.
Can I rent out a First Home?
No — the scheme is for owner-occupation only. Breaching that triggers enforcement by the local authority.
Where this sits in your planning
Schemes are one input to a buying decision, not the decision itself. Model the same purchase with and without the scheme on the affordability calculator — the total cash required and the monthly payment are usually the deciders, not the headline scheme benefit.