What is First Homes Scheme?

Full Definition

The First Homes scheme is an English government initiative that lets eligible first-time buyers purchase a designated new-build property at a discount of at least 30% — and up to 50% in some areas — below its open-market value. The discount is permanent: it stays with the property and is passed on to future eligible buyers when you sell, keeping the home affordable in perpetuity. To qualify you must be a first-time buyer, over 18, and able to get a mortgage for at least half the discounted price; for 2026/27 the discounted price after the reduction must usually be no more than £250,000 (or £420,000 in London), and councils can set local income caps and priority for key workers or local residents. It differs from Shared Ownership because you own 100% of the home outright rather than buying a share and paying rent on the rest. Stamp Duty Land Tax is calculated on the discounted purchase price, not the full market value.

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