Comparison · 2026/27
Right to Buy vs First Homes Scheme
Right to Buy and First Homes are both discounted routes into homeownership in England, but they apply to entirely different groups and property types. Right to Buy is for existing council tenants buying the home they already rent; First Homes is for first-time buyers purchasing a new-build home they have never lived in. This guide compares eligibility, discount structure and resale restrictions.
At a Glance
| Feature | Right to Buy | First Homes |
|---|---|---|
| Who it's for | Existing council tenants | First-time buyers, new-build |
| Property | Home you already rent | New-build, never lived in |
| Discount basis | Years of tenancy, capped | Fixed 30-50% |
| Discount on resale | Clawed back if sold early | Passed on in perpetuity |
| Income cap | No | Yes, household income cap |
| UK availability | England only | England only |
Exact discount percentages, caps and income thresholds are reviewed periodically — verify current figures on gov.uk before relying on them.
How Right to Buy Works
Right to Buy lets a secure council tenant purchase the home they currently live in at a discount to its market value, based on how many years they have been a public sector tenant. The discount rises with tenancy length up to a percentage cap, and is separately capped at a maximum cash amount that varies by region and is reviewed periodically.
Because the discount reflects years already spent as a tenant, it is only available on the specific home the tenant lives in — it cannot be used to buy a different property. Selling within a set number of years after completion triggers a sliding-scale repayment of some or all of the discount, designed to prevent quick resale purely to bank the discount.
How the First Homes Scheme Works
First Homes requires developers on qualifying new sites to sell a proportion of homes at a discount (30-50%, decided locally) to first-time buyers, subject to a household income cap. Unlike Right to Buy, eligibility has nothing to do with existing tenancy — a private renter, someone living with parents, or an existing council tenant who has never owned a home can all apply.
The discount is locked to the property permanently through a legal planning restriction, so every future sale must also be at the same percentage discount to market value, sold only to another eligible first-time buyer. This is designed to keep the homes affordable for successive generations of local first-time buyers, rather than the discount being a one-off windfall for the first purchaser.