How much of a discount does the First Homes scheme give first-time buyers?

Full answer

The First Homes scheme, run in England, requires developers on qualifying sites to sell a proportion of new-build homes to local first-time buyers at a discount of at least 30% below the property's full market value, with individual local planning authorities able to require a larger discount of up to 50% in their area depending on local affordability pressures. Unlike Help to Buy (now closed) or shared ownership, First Homes gives the buyer full, outright ownership of 100% of the property from day one — there is no separate share to staircase into and no rent payable on a retained share — the entire benefit comes through the discounted purchase price itself. To be eligible, buyers must be first-time buyers, have a combined household income no higher than £80,000 a year (£90,000 in Greater London), and be able to obtain a mortgage or have funds for at least 50% of the discounted purchase price. Local authorities can also apply additional local eligibility criteria, such as a local connection requirement, giving priority to people who already live or work in the area. The critical, permanent feature of First Homes is that the discount stays with the property forever, not just for the first buyer — when a First Homes property is eventually resold, it must be sold to another eligible first-time buyer at the same percentage discount below the market value at the time of resale, meaning the original buyer benefits from house price growth only on the discounted portion of value, not the full market value uplift, and cannot simply sell at full market price to pocket the full gain. Mortgage lenders offering First Homes mortgages assess affordability against the discounted purchase price, and Stamp Duty (where applicable) is calculated on the discounted price actually paid, not the full market value. Use the Stamp Duty and Mortgage Affordability calculators alongside First Homes eligibility checks on GOV.UK.

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