The scheme is available in England and only on homes designated as First Homes. Read the council approval, title restriction and property documents with a conveyancer before exchange. Your home may be repossessed if you do not keep up repayments.
National eligibility rules
According to GOV.UK, a buyer must be at least 18, be a first-time buyer and use the home as their only or main residence. The buyer must also be able to obtain a mortgage or home purchase plan for at least half of the discounted purchase price.
| Household income | No more than £80,000, or £90,000 for a property in London |
|---|---|
| Minimum discount | 30% of independently assessed market value; some schemes use 40% or 50% |
| Initial sale price cap | £250,000 after discount, or £420,000 in Greater London; a council can set a lower cap |
| Joint purchase | All purchasers must be first-time buyers and joint income must remain within the cap |
Local eligibility can also apply
A council may prioritise people who live or work locally, key workers or buyers on lower incomes. GOV.UK says these additional local criteria apply for the first three months a home is marketed. Armed Forces members and specified former partners, bereaved partners and recent veterans are exempt from local connection or key-worker conditions but still need to meet the other scheme rules.
How the discount works
If an independent valuation is £300,000 and the scheme discount is 30%, the discounted price is £210,000. A mortgage must cover at least £105,000 under the national minimum-finance rule. Deposit and mortgage availability still depend on the lender and application.
When the property is sold, the same percentage discount is applied to its then market value and the next buyer normally needs to meet First Homes requirements. The title and planning agreement secure the restrictions. The initial £250,000 or £420,000 price cap does not apply in the same way to later resales.
Finding and applying for a property
- 1. Find an advertised First Home. Availability is property-specific; search developer, estate-agent and council listings.
- 2. Check national and local criteria. The developer or estate agent starts the application and the council decides eligibility.
- 3. Appoint a conveyancer. They need to understand the First Homes restriction and council process.
- 4. Arrange the mortgage. Confirm that the lender accepts the specific property, valuation and scheme documents.
- 5. Obtain authority to exchange. The council, conveyancer, developer and lender each have a role before completion.
Mortgage and cost questions
- Which lenders within the broker's scope currently accept the scheme and this development?
- Is the deposit from savings, a Lifetime ISA or a gift acceptable under the chosen product?
- How do service charges, estate charges or ground rent affect affordability?
- What valuation and legal documents does the lender require?
- How does the restriction affect future remortgage and resale options?
- What property transaction tax applies to the actual purchase? Ask the conveyancer rather than relying on an illustration.
First Homes is not Shared Ownership
With First Homes, the buyer owns the property subject to the permanent discount restriction and does not pay rent on an unowned share. Shared Ownership involves buying a share and normally paying rent and service charges on the remainder. Compare availability, monthly cost, resale restrictions and future flexibility rather than comparing the deposit alone.
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