First Homes Scheme UK (2025): A Complete Guide for First-Time Buyers
Getting onto the property ladder can be challenging, especially for first-time buyers in the UK.
Rising house prices, high deposits, and tough mortgage requirements have left many young people and families feeling like homeownership is out of reach.
That’s where the First Homes Scheme comes in — a government-backed initiative designed to make buying your first home more affordable.
In this complete guide, we’ll explain how the First Homes Scheme works, who’s eligible, how it compares to other housing support schemes, and how to apply.
Government of UK official website tell about “First Homes scheme“: first-time buyer’s guidelines
First Home Scheme Buyers Guide Pdf : A First Home Scheme Pdf Guide
What Is the First Homes Scheme?
The First Homes Scheme is a government initiative introduced in 2021 to help first-time buyers in England purchase a new-build home at a discount of 30% to 50% off the market price.
The scheme is aimed at local people and key workers, helping them stay in their communities while owning a home.
The discount is permanent and stays with the property — meaning when you sell it in the future, it must be sold at the same percentage discount to another eligible buyer.
The scheme is supported by Homes England and local planning authorities and is typically applied to homes built under Section 106 agreements with developers.
Who Is Eligible for the First Homes Scheme?
To qualify for the First Homes Scheme, you must meet the following eligibility criteria:
✅ You Must Be a First-Time Buyer
This means you’ve never owned a property before, whether in the UK or abroad. Joint applicants must both be first-time buyers.
✅ Income Limits Apply
- £80,000 or less household income (outside London)
- £90,000 or less if you’re buying in London
✅ Local Connection Requirement
Local councils can set their own rules requiring applicants to have a local connection (e.g., living or working in the area) or give priority to key workers, such as:
- NHS staff
- Teachers
- Police officers
- Armed forces members
- Social workers
✅ Property Price Cap
The maximum price after the discount is:
- £250,000 outside London
- £420,000 in London
These limits apply to the discounted price, not the original market value.
look for First Home scheme ads in Pdf:
the first homes scheme ads on official ministry of housing govt website listed below
How Does the First Homes Scheme Work?
Here’s how the scheme typically works in practice:
1. Find a Property
Look for a new-build property that’s part of the First Homes Scheme. Not all developers participate, so you’ll need to check with local councils or Homes England.
2. Check Eligibility
Before you reserve the home, your eligibility is assessed by the developer and local authority. You’ll need to provide documents showing income, first-time buyer status, and local connection.
3. Reserve the Property
Once approved, you pay a reservation fee and start the home buying process.
4. Get a Mortgage
You’ll still need a mortgage for the discounted price. Most lenders require at least a 5% deposit, and your mortgage must cover at least 50% of the property’s value.
5. Legal Process
The discount is secured via a legal covenant that stays with the property, even when you sell. Your solicitor will handle this.
6. Selling a First Homes Property
If you decide to sell later, you must sell it at the same percentage discount to another eligible first-time buyer approved by the local council.
What Are the Benefits of the First Homes Scheme?
The First Home Scheme offers several major advantages:
💰 1. Substantial Discount
With a 30%–50% discount, homes become far more affordable, especially for young families or singles struggling with high deposits.
🧍♂️ 2. Designed for Key Workers & Locals
The scheme gives priority to essential workers, helping retain local talent in expensive housing areas.
🏠 3. Long-Term Affordability
The discount stays with the property, keeping it affordable for future generations.
💳 4. Lower Deposit & Mortgage
With a lower purchase price, you need less deposit and smaller mortgage repayments.
First Homes vs Other Government Housing Schemes
Let’s compare the First Homes Scheme with other popular homeownership schemes:
| Scheme | Who It’s For | Ownership Type | Discount / Support | Resale Conditions |
|---|---|---|---|---|
| First Homes | First-time buyers, key workers | Full ownership | 30–50% discount | Must sell with same discount |
| Shared Ownership | Low to mid-income buyers | Part-rent/part-own | Buy 10–75% | Buy more shares later |
| Help to Buy (Equity Loan) | New-build buyers (now closed for most) | Full ownership | 5–20% loan from gov’t | Loan repayable with interest |
| Right to Buy | Council tenants | Full ownership | Up to 70% discount | Resale restrictions apply |
| Lifetime ISA (LISA) | First-time buyers aged 18–39 | Savings scheme | 25% gov’t bonus on savings | Use for deposit only |
| Mortgage Guarantee | All buyers | Full ownership | 5% deposit allowed | No discount or grant |
The First Homes Scheme is ideal for buyers who want full ownership without needing to repay loans or share ownership.
How to Find a First Homes Property
Finding a First Homes property requires a bit of research:
🔍 Step 1: Contact Local Authorities
Your local council’s website will list new developments that include First Homes.
🏗️ Step 2: Ask Housing Developers
Major developers like Barratt Homes, Persimmon, and Taylor Wimpey often include First Homes in new developments.
🏢 Step 3: Check with Housing Associations
Some housing associations participate in the scheme or offer similar discounts.
Are There Regional Variations?
Yes. The First Homes Scheme only applies in England. Other UK nations have their own homeownership support:
🏴 Scotland – New Supply Shared Equity (NSSE)
- Discounted new-builds for first-time buyers.
- You buy a majority share, the government holds the rest.
🏴☠️ Wales – Help to Buy Wales / Homebuy
- Equity loans up to 20% of purchase price for new-builds.
- Local councils also offer Homebuy schemes with discounts.
🇮🇪 Northern Ireland – Co-Ownership Scheme
- Shared ownership with the ability to “staircase” to full ownership.
Is First Home Scheme could be wildly expensive?
Yeah, a lot of people see the First Home Scheme as a great way to get on the property ladder — and on the surface, it is. But many don’t realise the long-term costs.
You get a discount upfront (30–50%), but when you sell, you have to give back that percentage of the full market value — even if you’ve made improvements.
So if your home doubles in value, you owe double too.
Plus, with limited lenders, you might end up with higher interest rates and fewer options. Combine that with rising maintenance costs, potential leasehold fees, and the resale restrictions… it’s not always the bargain it seems.
So yeah, it’s helpful, but definitely not “free money.” People really need to look beyond the headline discount.
Frequently Asked Questions (FAQs)
Can I Use a Lifetime ISA With the First Homes Scheme?
Yes! You can combine a LISA with First Homes to help with your deposit. The government adds a 25% bonus to your savings, up to £1,000 per year.
Can I Sell a First Homes Property?
Yes, but you must resell it with the same discount to another eligible buyer. The local authority will need to approve the buyer.
What If I’m Not a Key Worker?
You can still apply, but key workers and locals get priority in most areas.
Is the Scheme Available on All New-Builds?
No. Only participating developers and councils offer First Homes properties.
Can I Use the Scheme Outside England?
No, the First Homes Scheme is for England only. Check regional schemes for Scotland, Wales, or Northern Ireland.
Final Thoughts: Is the First Homes Scheme Right for You?
The First Homes Scheme is a game-changer for first-time buyers who meet the criteria. If you’re eligible, it can save you tens of thousands of pounds, reduce your mortgage burden, and allow you to buy in your local area — especially valuable for key workers.
While it’s not available everywhere, and resale rules apply, the long-term affordability and full ownership make it a compelling option compared to schemes like Shared Ownership or Help to Buy.
🔗 Ready to Take the First Step?
Check your local council’s First Homes listings, speak with housing developers, or explore your mortgage options with a trusted advisor today.
Homeownership might be closer than you think — and the First Homes Scheme could be your key to unlocking it.