Last updated: April 2026 | Reading time: 9 minutes | Region: Birmingham, UK 🇬🇧
If you’ve been saving for years, watching Birmingham house prices climb, and wondering if you’ll ever get on the property ladder — this guide is written specifically for you.
The one-line answer: The First Homes Scheme lets you buy a brand-new home in Birmingham for at least 30% less than its market value — and that discount is yours the moment you sign. No equity loan. No shared ownership. Just your home, at a price you can actually afford.
What Is the First Homes Scheme?
The First Homes Scheme is a UK Government programme Homes England , supported by Homes England, that lets eligible first-time buyers purchase a new-build home at a discount of at least 30% off the open market value.
The scheme launched in 2021.
It was designed specifically to address one problem: too many local people — teachers, nurses, council workers, young families — were being priced out of the areas they grew up in.
Here’s the clever part: the discount stays with the property forever.
When you eventually sell, you sell at the same percentage discount to the next qualified buyer.
The community keeps benefiting — not just you.
Key Fact: The First Homes Scheme is available exclusively in England. If you’re in Birmingham — you’re eligible to apply.
Table 1: First Homes Scheme — The Key Facts at a Glance
| Detail | What You Need to Know |
|---|---|
| Discount | Minimum 30%, up to 50% off market value |
| Who it’s for | First-time buyers in England |
| Property type | New-build only |
| Max price (after discount) | £250,000 in Birmingham |
| Max household income | £80,000/year (outside London) |
| Min deposit required | 5% of discounted price |
| Min mortgage required | 50% of discounted price |
| Application fee | £500 (only paid on success) |
| Discount permanence | Yes — passes to every future buyer |
| Can you rent it out? | No — must be your main home |
| Available in Scotland/Wales? | No — England only |
| Government body | Homes England |
(Source: GOV.UK First Homes Buyer’s Guide) · (Source: Birmingham City Council First Homes Announcement)
(Source: GOV.UK — First Homes Scheme Overview)
The Big Numbers — What Does 30% Off Actually Mean for You?
Let’s make this real with actual Birmingham-level figures.
Say you find a new-build home in Perry Barr with a full market value of £220,000.
| Without the Scheme | With First Homes (30% off) | |
| Purchase Price | £220,000 | £154,000 |
| 5% Deposit | £11,000 | £7,700 |
| Monthly Mortgage (est.) | ~£1,050/month | ~£735/month |
| Stamp Duty | Higher | Lower (lower price) |
| Without First Homes | With First Homes (30% off) | Your Saving | |
|---|---|---|---|
| Property Market Value | £220,000 | £220,000 | — |
| Your Purchase Price | £220,000 | £154,000 | £66,000 |
| 5% Deposit Needed | £11,000 | £7,700 | £3,300 |
| Mortgage Needed | £209,000 | £146,300 | £62,700 less |
| Est. Monthly Repayment* | ~£1,110/month | ~£777/month | ~£333/month |
| Stamp Duty (FTB relief) | £0 (under £425k) | £0 (under £425k) | — |
| Total 5-Year Saving | — | — | ~£86,000 |
Estimates based on a 25-year repayment mortgage at 4.9% (April 2026 average rates). Figures are illustrative.
(Source: Yahoo Finance — UK Mortgage Rates April 2026) · (Source: GOV.UK Stamp Duty for First-Time Buyers)
That’s a £66,000 saving on day one. And a saving of over £300 every single month on your mortgage.
For Birmingham buyers, this isn’t a small perk — it’s the difference between renting forever and owning your first home by the end of this year.
Important: The maximum property price after the discount has been applied is £250,000 in Birmingham.
The local authority may set a lower cap depending on the development.
Who Qualifies? Full First Homes Scheme Eligibility for Birmingham
Let’s go through every criterion — no guessing, no ambiguity.
First Homes Eligibility — Quick Self-Assessment Checklist
| Criterion | Requirement | Your Status |
|---|---|---|
| First-time buyer | Never owned property anywhere | ✅ / ❌ |
| Income limit | ≤ £80,000 household/year | ✅ / ❌ |
| Deposit | Min 5% of discounted price | ✅ / ❌ |
| Mortgage | Min 50% of discounted price | ✅ / ❌ |
| Local connection | Live/work/family in Birmingham | ✅ / ❌ |
| Main residence | Must be your only home | ✅ / ❌ |
| No arrears | Clean rent/ASB history | ✅ / ❌ |
| Joint buyers | All buyers must qualify | ✅ / ❌ |
If you’ve ticked every box: you are ready to apply.
✅ You Must Be a First-Time Buyer
This means you have never owned a residential property anywhere in the UK or abroad — not inherited, not gifted, not purchased.
If you’re buying with a partner, both of you must be first-time buyers. There are no exceptions to this rule.
✅ Your Household Income Must Be £80,000 or Less
Your total household income (you plus anyone you’re buying with) must not exceed £80,000 per year before tax, based on the previous tax year’s figures.
This figure does not increase for Birmingham — the London cap of £90,000 does not apply here.
✅ You Need a Minimum 5% Deposit
You’ll need at least 5% of the discounted purchase price as a deposit.
So on a £154,000 First Home, that’s £7,700. This is the minimum — a bigger deposit will give you access to better mortgage rates.
✅ Your Mortgage Must Cover at Least 50% of the Home
You must secure a mortgage for no less than 50% of the discounted price.
This ensures the scheme supports buyers who genuinely need mortgage finance — not cash buyers.
✅ You Must Have a Local Connection to Birmingham
Most developments require you to already live, work, or have a local connection (such as family) in the Birmingham area.
Some schemes give priority to local buyers for the first three months of availability. After that, the requirement may loosen.
✅ The Property Must Be Your Main Residence
You cannot buy a First Home as a buy-to-let investment or a holiday home.
It must be your primary and only residence. The council checks this.
🪖 Special Rule: Armed Forces Exemption
If you are a current or recently discharged member of the Armed Forces (within the past five years), the local connection requirement does not apply to you.
The same exemption applies to bereaved spouses and civil partners of service personnel whose deaths were connected to their service.
This is a meaningful protection for military families.
Where in Birmingham Can You Buy? The Best Locations Right Now
The First Homes Scheme is available across Birmingham and the wider West Midlands, but some areas have more availability than others.
📍 Perry Barr — The Flagship Development
Perry Barr is the biggest and most significant First Homes location in Birmingham right now.
Birmingham City Council was awarded £5.7 million in government funding through the First Homes Early Delivery Programme, unlocking 99 discounted homes at the Perry Barr Residential Scheme (PBRS).
This development is part of a larger masterplan to deliver 5,000 new homes in northwest Birmingham over the coming years.
The Perry Barr 2040 Vision is transforming a historically underserved part of the city into a place people genuinely want to live — with new infrastructure, green spaces, and transport links built in from the ground up.
Birmingham & West Midlands First Homes Locations — At a Glance
| Location | Status | Key Feature | Priority Buyers |
|---|---|---|---|
| Perry Barr | ✅ Active | 99+ discounted homes, £5.7m funded | Local workers & FTBs |
| Northwest Birmingham | ✅ Active | Part of 5,000-home masterplan | Local connection required |
| Sutton Coldfield | ✅ Growing | National developer activity | Local buyers first 3 months |
| Erdington | 🔄 Emerging | Regeneration zone | Local buyers first |
| Solihull | ✅ Available | South Birmingham overspill | Local connection required |
| Wolverhampton | ✅ Available | Regional West Midlands access | Local buyers first |
| Coventry | ✅ Active | 20 miles from city centre | Local connection required |
(Source: BirminghamMoneyman — First Time Buyer Schemes) · (Source: SurveyMerchant — First Homes Birmingham Guide)
📍 Other Birmingham & West Midlands Areas to Watch
- Sutton Coldfield — new-build activity from national developers including Redrow and Bellway
- Erdington — emerging regeneration zone, more stock expected through 2026
- Northwest Birmingham broadly — the primary priority zone for the Perry Barr masterplan
- Solihull & Wolverhampton — regional spillover from Birmingham’s demand, with several qualifying developments
- Coventry — just 20 miles from Birmingham city centre, strong First Homes availability
Pro Tip: Your local authority’s housing portal will list available First Homes properties.
You can also find them through developers’ websites and portals like Share to Buy and Rightmove (filter by “First Homes”).
Step-by-Step: How to Apply for the First Homes Scheme in Birmingham
Here is every single step, in order, written so clearly that you could start today.
Step 1 — Get a Mortgage Agreement in Principle First
Before you fall in love with a property, speak to a specialist first-time buyer mortgage broker in Birmingham.
Get an Agreement in Principle (AiP) — this tells you exactly how much you can borrow and what your monthly payments will look like at the discounted price.
This takes the guesswork out of every step that follows.
Brokers like Birmingham Moneyman or New Homes Mortgage Helpline (partnered with several Birmingham developers) specialise specifically in first-time buyer mortgages and First Homes applications.
Step 2 — Find an Eligible Development
Search for new-build developments in Birmingham that are participating in the First Homes Scheme.
Major developers operating in Birmingham with First Homes offerings include:
- Barratt Homes
- Taylor Wimpey
- Bellway Homes
- Redrow
- Persimmon Homes
- Linden Homes
Not every plot on a development is designated as a First Home — ask the sales team which specific units are eligible. They will know immediately.
Step 3 — Complete the Affordability Assessment
The developer’s sales team or mortgage advisor will walk you through a formal affordability assessment.
This checks your income, outgoings, credit history, and deposit to confirm you can sustain the purchase.
Birmingham City Council also requires that you have no history of rent arrears or anti-social behaviour as part of the eligibility check.
Step 4 — Submit Your Application Through the Developer
Your application is submitted to Birmingham City Council on your behalf.
As part of this process, a solicitor will conduct Land Registry searches to confirm your first-time buyer status.
There is an application fee of £500 — but this is only payable once your application is approved and you are proceeding with a purchase. You do not pay this upfront.
Step 5 — Receive Your Authority to Proceed
If your application is approved, Birmingham City Council will issue you an Authority to Proceed alongside an Eligibility Certificate.
This is your official confirmation that you qualify and can move forward.
Do not instruct a conveyancer or pay any reservation fees until you have this document.
Step 6 — Reserve Your Home and Instruct a Conveyancer
Once you have your Authority to Proceed, reserve your chosen home with the developer.
Then appoint a solicitor or licensed conveyancer who is experienced with First Homes transactions — the legal process has specific requirements around the discount covenant, and not every conveyancer will be familiar with it.
Step 7 — Exchange Contracts and Complete
Your mortgage is finalised, contracts are exchanged, and you complete.
You get the keys. You own your first home — at 30% less than the market rate.
Timeline Tip: From application to completion on a new-build can take 3–6 months. Starting your mortgage AiP and eligibility checks as early as possible dramatically speeds things up.
First Homes vs Every Other Scheme — Which One Is Right for You?
You may have heard of other government schemes. Here’s how they honestly compare.
| Scheme | What You Own | Discount or Help | Catch |
| First Homes | 100% of property | 30–50% off purchase price | Must sell at same discount |
| Shared Ownership | 25–75% initially | Lower upfront cost | Pay rent on the rest; complex to sell |
| Lifetime ISA | 100% (savings bonus) | 25% govt bonus on up to £4k/year | Can only use for homes under £450k; penalties for early withdrawal |
| Deposit Unlock | 100% | 5% deposit accepted by lenders | No price discount — just lower deposit barrier |
| Help to Buy (Wales only) | 100% | Equity loan up to 20% | Loan must be repaid; no longer available in England |
The verdict: If you want 100% outright ownership with the biggest immediate discount — and you’re buying in Birmingham — First Homes is the strongest single option available to you in 2026.
Shared Ownership may suit buyers who can’t yet reach the 5% deposit or income threshold.
The Lifetime ISA works best as a complement to First Homes — use it to build your deposit while you search for a qualifying property.
What Happens When You Want to Sell?
This is the question most first-time buyers forget to ask — until it’s too late.
When you sell a First Home, you must pass the same discount percentage to the next buyer. If you bought at 30% off, you sell at 30% off the then-current market value.
Let’s say your Perry Barr home rises in value from £154,000 to £175,000 over seven years (the full market value of the property has grown from £220,000 to £250,000).
- You cannot sell at £250,000
- You must sell at £175,000 (70% of £250,000)
- You still make a £21,000 profit from your original purchase price
- You still build equity the whole time you live there
You will never receive the full 100% market value when you sell.
But you’re not losing money — you’re growing equity and wealth in a home you fully own, while keeping it affordable for the next Birmingham family trying to get started.
Remember: The discount is what made your purchase possible in the first place.
It simply travels with the home — as it should.
Mortgage Lenders That Accept First Homes in Birmingham
Not every high street lender offers First Homes mortgages yet — though the list is growing.
These are currently active and participating lenders to look into:
- Nationwide Building Society
- Halifax
- Barclays
- Leeds Building Society
- Newcastle Building Society
- Darlington Building Society
- Mansfield Building Society
You will need a specialist mortgage advisor to help you identify the right product based on your deposit size, income, and the specific development you’re buying on.
A broker costs you nothing — they’re paid by the lender.
7 Mistakes First-Time Buyers Make With the First Homes Scheme (And How to Avoid Them)
Mistake 1 — Falling in love with a property before checking eligibility. Always confirm the specific plot you want is First Homes-designated before getting emotionally invested.
Mistake 2 — Not getting an AiP before viewing. Know your borrowing limit first. It makes every conversation with a developer faster and more credible.
Mistake 3 — Using a conveyancer who doesn’t know First Homes. The legal covenant on a First Home is specific. Use a solicitor who has done this before.
Mistake 4 — Forgetting the £500 application fee. Budget for it. It’s only paid on success, but it’s real money you’ll need available.
Mistake 5 — Assuming all developments qualify. They don’t. First Homes are allocated on a plot-by-plot basis during planning. Always ask the sales team directly.
Mistake 6 — Combining First Homes with equity loan schemes. First Homes generally cannot be combined with other government equity loan products. Be upfront with your broker about every scheme you’re considering.
Mistake 7 — Waiting to see if prices drop. Birmingham’s housing pipeline is growing — but demand from first-time buyers isn’t slowing.
Properties at Perry Barr and across northwest Birmingham have moved quickly. Waiting has a cost.
Your Quick-Reference Checklist Before You Apply
Before you contact a developer or broker, run through this list:
- [ ] I have never owned a property in the UK or abroad
- [ ] My household income is £80,000/year or less
- [ ] I have at least 5% of a discounted purchase price saved
- [ ] I live, work, or have a connection to Birmingham
- [ ] I am prepared to make this my main residence
- [ ] I have spoken to a mortgage broker and have an AiP (or am about to)
- [ ] I have identified at least one qualifying development in Birmingham
- [ ] I have budgeted for the £500 application fee
If you’ve ticked every box — you’re ready.
The Bottom Line
The First Homes Scheme in Birmingham is the most powerful first-time buyer tool available in the UK right now.
It cuts your purchase price by at least 30%. It reduces your deposit. It lowers your monthly mortgage by hundreds of pounds.
It gives you 100% ownership from day one — no loans to repay, no rent to pay on a share you don’t own.
The trade-off is simple: you pass the discount on when you sell. For most Birmingham first-time buyers, that’s an easy deal to make.
Your very next step: Find a qualified mortgage broker in Birmingham, get your Agreement in Principle, then find a First Homes-eligible development in Perry Barr or the surrounding area. The homes are out there.
The discount is real. The only thing standing between you and your first home is starting.
Sources and Citations:
GOV.UK First Homes Scheme Guide · Birmingham City Council First Homes Announcement · Homes England Affordable Homes Programme · Zoopla First Homes Explainer · Bellway Homes First Homes Guide · Taylor Wimpey First Homes Scheme · Redrow First Homes · Linden Homes First Homes · ShareToBuy.com · SurveyMerchant First Homes Birmingham · BirminghamMoneyman Government Schemes Guide · FirstHomesScheme.com 2026 Update
All Sources & Citations — Full Reference List
| Source | Topic Covered | Link |
|---|---|---|
| GOV.UK | Official First Homes Scheme guide, eligibility, rules | gov.uk/first-homes-scheme |
| Birmingham City Council | Perry Barr funding, eligibility criteria, application process | birmingham.gov.uk |
| Birmingham City Council | Perry Barr Residential Scheme Phase One details | birmingham.gov.uk/pbrs |
| Birmingham City Council | Perry Barr community benefits & jobs created | birmingham.gov.uk/community |
| Homes England | Affordable Homes Programme 2021–2026 | gov.uk/ahp |
| Zoopla | First Homes buyer’s guide and resale rules | zoopla.co.uk |
| Bellway Homes | Eligibility criteria, application steps | bellway.co.uk |
| Taylor Wimpey | Scheme FAQ, buyer guidance | taylorwimpey.co.uk |
| Redrow | Application steps, conveyancer guidance | redrow.co.uk |
| Linden Homes | Joint buyer rules, Armed Forces exemption | lindenhomes.co.uk |
| ShareToBuy | Birmingham application fee, Authority to Proceed | sharetobuy.com |
| BirminghamMoneyman | Government schemes comparison, Lifetime ISA | birminghammoneyman.com |
| SurveyMerchant | First Homes Birmingham selling rules | surveymerchant.com |
| BSA | Six Building Societies supporting First Homes | bsa.org.uk |
| Mortgage Strategy | Halifax First Homes mortgage launch | mortgagestrategy.co.uk |
| FirstHomesScheme.com | 2026 new towns update, mortgage lenders | firsthomesscheme.com |
| Yahoo Finance / BritBrief | Mortgage rate data April 2026 | uk.finance.yahoo.com |
This article is for informational purposes only and does not constitute financial or legal advice. Always consult a qualified mortgage advisor and conveyancer before making a property purchase decision.